Ghana’s economy more stable than ever in decades – Mahama
President John Dramani Mahama has declared that Ghana’s economy is currently enjoying one of its most stable periods in several decades, citing improvements in inflation, exchange rate stability, interest rates and foreign reserves as signs of strong economic recovery and resilience.
Speaking during the #ResettingGhana Tour Citizens’ Engagement in the Savannah Region, President Mahama said the country has achieved macroeconomic stability despite recent external economic pressures affecting global markets.
According to him, inflation has significantly declined and remains under control, reflecting prudent economic management and growing resilience within the economy.
“Our economy is doing much better than it has ever done in the last several decades. We have achieved macroeconomic stability, and so inflation is down,” Mahama stated.
He explained that inflation had reduced to 3.2 percent before marginally increasing to 3.4 percent due to external factors. However, he noted that the slight increase does not undermine the overall stability of the economy.
Mahama stressed that unlike in previous years when external shocks quickly triggered high inflation and rapid currency depreciation, the current economic structure has proven more resilient.
“In the past, as soon as there was any external shock, the inflation rate started shooting up, and then also the currency started depreciating very fast, but things look more stable,” he said.
The President further indicated that the Ghana cedi has remained stable while interest rates have declined, creating a more conducive environment for businesses and investment.
He also highlighted Ghana’s improving foreign reserve position, revealing that the country currently holds reserves worth approximately $13.9 billion.
According to him, the reserves are capable of covering about 5.7 months of imports, a development he described as a major boost to economic confidence and stability.
President Mahama disclosed that government is pursuing a new policy aimed at increasing the reserve cover to 15 months of imports to protect the economy from future global shocks.
“We’ve come up with a new policy to build the reserves even higher to be able to cover 15 months of imports, so that in the event of any external shock, Ghana’s economy will be resilient and will not be affected,” he added.
Mahama reaffirmed government’s commitment to sustaining macroeconomic stability and strengthening the economy to ensure long-term growth and resilience.
