We're getting out of the woods, economy grew 4.7% in Q1 2024 - Finance minister

The Minister of Finance, Dr. Mohammed Amin Adam, has said Ghana's economy is showing strong signs of recovery, with a 4.7% growth in the first quarter of 2024.

He mentioned that this was positive development which demonstrates the resilience of government's economic policies to restore growth.

"Our economy grew by 4.7% in the first quarter of this year, surpassing our expectations. This growth demonstrates the resilience of our economic policies and the hard work of Ghanaians," he stated during his mid-year budget review presentation to Parliament on July 23, 2024.

The Finance Minister credited this positive performance to effective policy measures, strong economic management, and the unwavering spirit of the Ghanaian people.

He also highlighted that the government's strategic interventions had created a stable and supportive environment for growth.

"The government has been focusing on key areas to drive economic recovery, such as fiscal discipline, investment in critical sectors, and support for Small and Medium-sized Enterprises (SMEs)."

The Minister explained that maintaining fiscal discipline is essential to sustain this growth momentum.

"Despite global economic challenges, our government remains committed to fiscal discipline. This discipline is crucial for economic stability and creating an environment conducive to investment and growth," he remarked.

"One significant contributor to the economic rebound has been the government's investment in infrastructure. Projects like roads and hospital infrastructure, such as the ongoing Agenda 111 project, have not only created jobs but also stimulated economic activity across various sectors."

"Support for SMEs has also played a critical role in the economic recovery. Recognizing the importance of SMEs in the economy, the government mobilized GH¢8.2 billion to support these enterprises. This funding aims to address challenges like access to finance, capacity building, and market access, enabling SMEs to thrive and contribute significantly to the economy.

"SMEs are the engine of our economy, driving growth, creating jobs, and fostering innovation. Our substantial support for SMEs underscores our commitment to ensuring their sustainability and growth," Dr. Adam noted.

The Finance Minister highlighted improvements in inflation and exchange rate stability as crucial elements of the economic recovery.

"These improvements have provided relief to businesses and households, creating a more stable economic environment."

He acknowledged the global economic challenges that continue to pose risks but expressed confidence in the resilience of the Ghanaian economy asserting that the government's proactive measures and strategic planning would help mitigate these risks and sustain growth.

In addition to economic growth, the mid-year budget review also emphasized the government's efforts to enhance social services and improve the quality of life for all Ghanaians.

Dr. Adam stressed that these social investments are part of the government's broader strategy to achieve inclusive growth and ensure that no Ghanaian is left behind.

"Our investments in social services are crucial for fostering inclusive growth and ensuring that all Ghanaians have the opportunity to thrive. We are committed to building a society where everyone can benefit from the nation's progress," he said.

MA/NOQ

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