Minister of Finance Dr. Mohammed Amin Adam
Ghana’s economy is showing signs of recovery as evidenced by a significant decline in inflation from 25.0% in April 2024 to 23.1% in May 2024.
This decline marks a notable decrease from the peak of 54.1% recorded in December 2022.
The Minister of Finance, Mohammed Amin Adamu, highlighted the achievement at a joint press conference held by the Ministry of Finance, the Bank of Ghana (BoG) and the International Monetary Fund (IMF) on Monday, July 1, 2024.
Minister Adamu attributed this positive trend to a series of effective fiscal and monetary policies implemented over the past year.
“The process of inflation containment that we are witnessing is a direct result of our ongoing fiscal consolidation efforts, the appropriate monetary policy tightening by the Central Bank, and the relative stability of the exchange rate,” he said.
The Minister stressed the government’s commitment to maintaining macroeconomic stability, which has been crucial in achieving these results. “The global situation is challenging, but the strong leadership of His Excellency President Nana Addo Dankwa Akufo-Addo and the support and contribution of the Ghanaian people have undoubtedly contributed to the success we are seeing today,” Minister Adamu said.
A closer look reveals that the government’s multi-pronged approach includes several key measures aimed at stabilizing the economy, including monetary tightening by the BoG, deepening the fiscal consolidation program, strengthening the gold-for-oil and gold-for-reserves exchange programs, and securing expected foreign exchange inflows from multilateral, bilateral and private financial institutions.
“Following the approval of the second review by the IMF Executive Board last Friday, we expect significant inflows, including the third IMF tranche of $360 million to be disbursed to Ghana by the close of business today,” the minister said in a statement. Additional inflows are also expected from the World Bank and other bilateral agencies.
Minister Adamu also noted that the economic recovery is broad-based, highlighting that overall real GDP growth reached 4.7% in the first quarter of 2024, the highest since the first quarter of 2022. This growth rate is significantly better than the 3.1% recorded in the same period in 2023, with the industry, agriculture and services sectors all showing robust performances.
He expressed confidence that Ghana’s economy would continue to perform well, noting that in the near future, Ghana would achieve greater success by expanding the implementation of its IMF-supported programs.