Minister of Finance, Dr. Muhammad Amin Adam
Ghana’s economy is showing promising signs of recovery, as evidenced by a significant decline in inflation, which has fallen to 23.1% in May 2024 from 25.0% in April 2024.
This decline marks a marked decline from the peak of 54.1% recorded in December 2022.
Finance Minister Mohammed Amin Adam highlighted this achievement at a joint press conference held on Monday, July 1, 2024, by the Ministry of Finance, the Bank of Ghana (BoG) and the International Monetary Fund (IMF).
Minister Adam attributed this positive trend to a series of effective fiscal and monetary policies implemented during the past year.
“The disinflation process we are witnessing is a direct result of our continued efforts for fiscal consolidation, the appropriate tightening of monetary policy by the BG and the relative stability of the exchange rate,” he said.
The minister emphasized the government’s commitment to maintaining macroeconomic stability, which has been decisive in achieving these results. “Despite the challenging global environment, the strong leadership provided by His Excellency President Nana Addo Dankwa Akufo-Addo and the support and input of the people of Ghana have undoubtedly contributed to the successes we are seeing today,” noted Adam.
Further details revealed that the government’s multi-pronged approach includes several key measures aimed at stabilizing the economy. These measures include a tight monetary policy by the BG, the deepening of the fiscal consolidation program, the intensification of the gold-for-oil and gold-for-reserves programs and the provision of anticipated forex inflows from multilateral, bilateral and private financial institutions.
“We expect significant financial inflows, including the third IMF tranche of $360 million to be disbursed in Ghana by the close of business today, following the approval by the IMF Executive Board of the 2nd Review of last Friday”, said the minister. Additional inflows are expected from the World Bank and other bilateral institutions.
Minister Adam also noted the broader economic recovery, highlighting that overall real GDP growth for the first quarter of 2024 reached 4.7%, the highest since the first quarter of 2022. This growth is significantly better than the 3.1% recorded in the same period in 2023, with the industry, agriculture and services sectors all showing strong performances.
He expressed confidence in the continued positive trajectory of Ghana’s economy, noting that in the near term, the country will see even greater results as it ramps up the implementation of the IMF-supported programme.
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