At the monthly press briefing on the economy for the month of August, the Finance Minister emphasized that the government remained committed to sustainable economic development through prudent fiscal management, structural reforms, and social protection initiatives.
“Our medium-term outlook is optimistic, with projected improvements in GDP growth, inflation control, and fiscal health,” Dr. Adam stated.
These projections, he noted were based on the government’s continued efforts to implement sound economic policies and initiatives aimed at fostering sustainable development.
The Finance Minister highlighted the government’s achievements in maintaining macroeconomic stability despite challenging global and domestic conditions. According to him, Ghana’s economy expanded by 4.7% in the first quarter of 2024, up from 3.1% in the same period in 2023, indicating resilience and a steady recovery path.
He also cited the progress made under the IMF-supported Post-Covid-19 Programme for Economic Growth (PC-PEG) and the ongoing debt restructuring program as key drivers of this positive outlook.
“We remain focused on building on this momentum. Let me assure you that we will stay the course and remain within the 2024 Appropriation,” Dr. Adam said, reaffirming the government’s commitment to fiscal discipline and sustainable growth.
Dr. Adam acknowledged that while there is optimism about Ghana’s economic trajectory, there are risks to be managed, particularly concerning the dry weather conditions affecting agricultural production in parts of the country.
“We are mindful of risks to the outlook including the impact of the dry spell on our farmers and on the economy,” he noted.
To mitigate the impact, the government has put in place an elaborate plan to minimize the effects on the people and the economy. This includes a temporary ban on the export of certain grains, mopping up local stock, and providing drought relief support and input support to affected farmers.
The risk was also affirmed by the Agriculture Minister Dr. Brain Acheampong, stating that the emergency support from government is meant plug the gap created in his short term.
The Finance Minister also pointed out that inflation control measures have started yielding positive results. Inflation dropped to 20.9% in July 2024 from 22.8% in June 2024, driven by a decrease in both food and non-food prices. The Minister attributed this decline to a combination of tight monetary policies, fiscal consolidation, and improved exchange rate stability.
“The strong disinflation process which started in 2023 continues to show further progress,” he said.
Regarding the Ghanaian currency, Dr. Adam reported a relative stabilization of the cedi against major trading currencies. This stability, he explained, was largely due to the tight monetary policy by the Bank of Ghana, the gold-for-oil programme, and other measures aimed at enhancing foreign exchange stability.
Dr. Adam also provided updates on Ghana’s debt restructuring efforts, both domestic and external and noted that the government was on track to achieve its debt targets under the IMF programme.
“The debt exchange will allow Ghana to save US$4.4 billion in debt service and a cancellation of US$4.7 billion over the course of the IMF program,” he explained, adding that these efforts are crucial for reducing Ghana’s debt-to-GDP ratio to 55 percent by 2028.
The Finance Minister concluded by reiterating the government’s dedication to social protection and structural reforms.
“The government’s dedication to social protection, structural reforms, and prudent public finance management will continue to drive our efforts towards sustainable development,” he said.
The August monthly economic press engagement which is the fifth media encounter on the economy afforded the media the opportunity to ask questions on the economy and other pertinent national issues.
