The Finance Minister, Dr. Mohammed Amin Adam, says the measures put in place to improve the economy are beginning to show results.
The Minister admitted that the past two years have been globally challenging, with Ghana being no exception.
According to him, the difficult economic environment impacted businesses and families, especially the vulnerable in society.
Presenting the midyear budget review to parliament, the Finance Minister stated that, "Mr. Speaker, over the last two years, the government has embarked on a number of decisive measures to get us back on the path of fiscal consolidation, economic stability, and growth. I am happy to note that these policies that we have implemented are yielding the expected results.”
The Minister also stated that growth continues to exceed expectations. He highlighted that the 4.7 percent growth rate reported by the Ghana Statistical Service for the first quarter of 2024 surpasses the revised target of 3.1 percent.
Dr. Mohammed Amin Adam noted that inflation is declining, with the end-June inflation rate at 22.8 percent, a reduction of 31 percentage points since December 2022.
The MP said that this suggests that reaching the target threshold of +/- 2 of 15 percent by the end of 2024 is possible.
He added that the exchange rate has largely stabilized compared to December 2022, despite recent pressures.
The finance minister pointed out that the 18.6 percent depreciation rate against the US dollar as of June 2024 represents an improvement over the 22.0 percent recorded for the same period last year.
“Gross International Reserves reached 3.1 months of imports as of June 2024, against 2.5 months of imports in the same period last year. Mr. Speaker, it is evident that we are on the right trajectory. The economy is rebounding stronger than anticipated. The choices we have made and the policies we are implementing yield results. We have reversed the negative trends; all the indicators are looking better. I want to assure you that we will stay on this path and continue to make the right choices. Our economic recovery is fast and strong.”
Credit: Isaac Kafui Nyanyovor