The Finance Minister Hon. Dr. Mohammed Amin has Provided updates to the nation on economic performance.
The finance minister began by expressing gratitude to Ghanaians for their unwavering support throughout the journey to stabilize the economy. Dr. Amin Adams acknowledged that the collective efforts of the government and its citizens were yielding positive results, instilling confidence that the country would continue to see more improvements in the near future.
“.. To restore macroeconomic stability and foster economic recovery to improve the standard of living of the Ghanaian people there is no doubt that our concerted effort is yielding positive results.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
The finance minister recounts that the mid-year review emphasized Ghana’s steady economic growth, despite global and local challenges.
“Growth continues to show signs of resilience and robustness with the economy expanding by 4.7% in Q1 of 2024 compared with 3.1% recorded in the corresponding period of 2023…the recent data on the Composite Index of Economic Activity published by the Bank of Ghana indicates a sustained pickup in economic activities.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
According to the finance minister, recent data from the Bank of Ghana’s Composite Index of Economic Activity (CIA) indicated a sustained pickup in economic activities, with an annual growth rate of 3.3% in May 2024, up from 2.1% in the first quarter of the year. This growth contrasted with the contraction of 3.7% recorded in May 2023, pointing to a positive trajectory.
Social Protection Efforts Intensified
Dr. Amin Adam acknowledged the impact of economic challenges on the poor and vulnerable, the government increased funding for social protection programs such as the Livelihood Empowerment Against Poverty (LEAP), the National Health Insurance Program (NHIS), the Ghana School Feeding Program, and the Capitation Grant.
“To protect the poor and vulnerable, during these challenging times, we have provided more resources for well-targeted social interventions…the transfers for the LEAP program increased from GHS50 million in 2016 to GHS428.8 million in 2023. This has further been increased to GHS720 million for the 2024 financial year.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
Inflation Eases, Economic Conditions Improve
The finance minister reported on the disinflation process that began in 2023 and continued to progress in 2024.
“The strong disinflation process, which started in 2023, continues to show further progress… Inflation declined to 20.9% in July 2024 from 22.8% in June 2024. This is coming from 54% in 2022.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
This was a marked improvement from the high inflation rate of 54% recorded in 2022. Both food and non-food prices saw deceleration, contributing to the overall decline in inflation
Dr. Amin Adams also highlighted the stabilization of the Ghanaian cedi, which had seen significant depreciation in 2022. By July 2024, month-on-month depreciation against the US dollar had improved significantly, reflecting positive outcomes from various government interventions such as the Gold-for-Oil program and the Bank of Ghana’s policies.
Moreover, Dr. Amin Adam highlighted that the government’s fiscal consolidation efforts were evident in the provisional fiscal data for the first half of 2024. Total revenue and grants amounted to GHS89.4 billion, which exceeded the program target by 0.7%.
“While revenue exceeded target, expenditure is below target. The consequence is that overall budget deficit will be an improvement on what was programmed for the period.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
Public Debt and Debt Restructuring
According to the finance Minister, Ghana’s public debt stood at GHS761.1 billion as of July 31, 2024, with the Minister attributing the increase in cedi terms to domestic financing and cedi depreciation. He announced that the country was set to officially launch its external debt restructuring program, which had seen progress in negotiations with bondholders.
“We are pleased to officially launch our exchange offer in the coming days, marking a critical step in our external debt restructuring journey.… the progress we are witnessing transcends macroeconomic stability and growth to include significant improvement in social protection.”
Hon. Dr. Mohammed Amin the Finance Minister of Ghana
The mid-year fiscal policy review painted a picture of cautious optimism. While challenges remained, the finance minister stressed that Ghana’s economy was on a path of recovery and growth, backed by strong fiscal consolidation, effective social interventions, and ongoing efforts to stabilize inflation and the currency. The government’s commitment to safeguarding the welfare of its citizens while achieving economic stability was reiterated as the core of its agenda.
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