Mid-Year Budget Review: Reversal of negative economic trends shows promising recovery – Amin Adam

Finance Minister Dr. Mohammed Amin Adam has announced that the economy is recovering more strongly than anticipated. He made this announcement during the presentation of the Mid-Year Budget Review on Tuesday, July 23, 2024. Dr. Amin Adam stated that government has reversed the negative trend, adding that the economic indicators are looking better.

He credited this improvement to the stabilization of the exchange rate, a drop in inflation, and an increase in gross international reserves. He stated that policies and decisions being implemented by government are producing positive results.
“Growth continues to exceed our expectations. The 4.7 percent growth rate reported by the Ghana Statistical Service for the first quarter of 2024 exceeds the revised target of 3.1 percent; Inflation is declining. The end-June inflation rate of 22.8 percent, a reduction of 31 percentage points since December 2022, confirms the target threshold of +/-2 of 15 percent by the end of 2024 is possible;

He stressed, “Exchange rate has largely stabilized, compared to December 2022, despite the recent pressures. The 18.6 percent depreciation rate to the US Dollar as of June 2024, represents an improvement over the 22.0 percent recorded for the same period last year; and Gross International Reserves reached 3.1 months of import as at end 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 are yielding results. We have reversed the negative trends, all the indicators are looking better.” The Finance Minister assured that the government will remain dedicated to its current course and continue to make sound decisions to maintain the country’s economic growth.

“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.
“Mr. Speaker, over the last six months, we have sought to bring some urgency and speed to the implementation of key government programmes and also swiftly provided the necessary support for growth-enhancing initiatives” he emphasized.