President Nana Addo Dankwa Akufo-Addo and his Cabinet have adopted a number of economic measures aimed at further solidifying growth and reining in spending in an effort to maintain Ghana’s impressive progress towards economic recovery.
This decision comes on the heels of a three-day retreat that began on October 20, where the nation’s economic landscape and the humanitarian crisis in the Lower Volta region, triggered by the Akosombo and Kpong Dams’ spillage, were discussed.
The retreat coincided with the International Monetary Fund’s approval of a $600 million balance of payment support tranche for Ghana after reaching a staff agreement, underscoring the nation’s commitment to financial stability and growth.
Information Minister Kojo Oppong Nkrumah addressed journalists after the retreat, emphasising the positive outcomes of the Policy Credibility and Exchange Rate Policy (PC-Peg) implementation. He highlighted the following key points:
Economic Stability and Recovery: The cabinet expressed satisfaction with the relative stability and recovery of the Ghanaian economy. Efforts are underway to further reduce the inflation rate, which currently stands at 38.1%.
Fiscal Consolidation: The government has achieved fiscal consolidation between the previous and current years.
Cedi Stabilisation: He claimed that the Ghanaian cedi has exhibited a more stable performance.
International Reserves Improvement: The nation’s international reserves position is gradually strengthening.
Job Creation: Economic growth and job creation are on the rise, with a particular focus on providing opportunities for the country’s youth.
The Information Minister outlined the primary focus of the Cabinet’s discussions, stating, “The major item the cabinet was considering was the economy. Firstly, to examine the implementation of post-crisis economic growth The PC-Peg was examined to determine whether or not it was bearing the fruits that we were looking for. And secondly, to see if there are any consequential decisions to be made.”
Moreover, Mr. Oppong Nkrumah revealed that the Cabinet had approved additional economic measures with the goal of solidifying the emerging stability, stimulating further growth, and creating jobs.
These measures include tighter spending controls, ensuring that government expenditures align closely with the country’s revenue limits. Looking ahead, he emphasised, “2024 is about deepening the stability.”
