Ghana’s Economy Shows Resilience Amid Challenges – Finance Minister
Ghana’s economy is showing signs of resilience and robustness, with a growth rate of 4.79% in the first quarter of 2024, compared to 3.1% in the same period last year. This was announced by the Minister of Finance, Dr. Mohammed Amin Adam, during a monthly press briefing on the economy.
*Fiscal Consolidation and Debt Restructuring*
The government has made significant progress in fiscal consolidation and debt restructuring, with a decline in inflation and a relative stabilization of the cedi. The debt restructuring program has also been successful, with a reduction in debt service and a cancellation of debt over the course of the IMF program.
*IMF-Supported Program*
Ghana is currently preparing for the third review of its IMF-supported program, which is expected to be completed by the end of December 2024. The program has been successful in driving economic growth and stability, with a projected improvement in GDP growth, inflation control, and fiscal health.
*Dry Weather Conditions*
The government has put in place emergency measures to mitigate the impact of dry weather conditions on agricultural production, food security, and the economy. These measures include a temporary ban on export of selected grains, importation of grains and poultry feed, drought relief support, and input support for affected farmers.
*Social Protection*
The government has increased resources for social protection programs, including the Livelihood Empowerment Against Poverty (LEAP) program, the National Health Insurance Program (NHIS), the Ghana School Feeding Program (GSFP), and the Capitation Grant Program. These programs aim to protect the poor and vulnerable during challenging times.
*Conclusion*
The Minister of Finance concluded that Ghana’s economy is on a path of sustained recovery and stability, with a solid foundation for future growth. The government remains committed to sound economic policies, fiscal consolidation, and debt sustainability, and is working to address the challenges posed by dry weather conditions.
