Ghana's economic resilient programme attracts positive outlook from key partners - Dr. Amin Adam

Finance Minister, Dr. Mohammed Amin Adam, has highlighted the global financial leadership's positive outlook for Ghana’s economy.

According to him, the positive remarks from the bilateral engagements with world leaders including the IMF Managing Director, Kristalina Geogieva and World Bank President, Ajay Banga were a testament to Ghana’s rebounding economy.

The positive outlook and assurances from the meetings, the finance minister indicated, had informed the country’s external partners’ confidence and eagerness to disburse funds as soon as the government reached an agreement with its official creditors and concluded the external debt restructuring.

Addressing a section of Ghanaian media in Washington DC, USA, the finance minister said the measures adopted by the government to restore macroeconomic stability and build resilience through the implementation of the PC-PEG under the Extended Credit Facility (ECF) in May 2023 were already yielding the desired results.

“These measures have delivered very favourable macroeconomic outcomes in just one year. These include more than anticipated growth performance in GDP growth with GDP ending 2023 at 2.9% compared to the original target of 1.5% and the revised target of 2.3%," he said.

He pointed out that inflation was declining by 30.9 percentage points to 23.2% at the end of December 2023 after peaking at 54.1% in December 2022 and further added that "we have seen good progress in inflation in 2024, as well as it maintained its rate of 23.2% in February 2024 but increased slightly to 25.8% in March 2024 due mainly to the base effect.”

The finance minister acknowledged the relative stability of the Cedi against the major trading currencies, and the improvement in the public debt trajectory as the debt-to-GDP ratio reduced to 71.4% of GDP at the end of 2023 from 73.5% of GDP at the end of 2022. According to the minister, this is an improvement in fiscal balances indicating a strong drive towards fiscal consolidation.

“The primary balance (on commitment basis) which is the fiscal anchor under the program improved from a deficit of 4.3% of GDP at the end of 2022 to a deficit of 0.3% of GDP at the end of 2023. The 2023 outturn was lower than the target deficit of 0.5% of GDP,” Dr. Adam said.

These impactful measures the minister noted, featured prominently in discussions with the IMF, World Bank Group and other bilateral meetings attracting commendations from partners.

While in the USA, Dr. Mohammed Amin Adam also led a high-level government delegation including the Governor of the Central Bank, Dr Ernest Addison to Washington DC to attend the 2024 IMG/World Bank Spring Meetings under the theme “Vision to Impact”.

The Minister for Finance who is the chair of the Vulnerable 20 Group of Finance Ministers hinted of the group’s discussion targeted at intensifying national and regional measures through Climate Prosperity Plans.

The plans, according to the Minister were aimed at transforming the development trajectory of vulnerable economies into one that was capable of thriving despite challenges.

“The 2024 Spring 2024 Spring Meetings concluded with a strong reaffirmation of the V20's commitment to intensify global engagement and collaboration. There was a strong push for the operationalization of the Climate Vulnerable Forum’s (CVF) objectives through global initiatives like the Accra-Marrakech Agenda and the Bridgetown Initiative,” he noted.

Ghana's leadership of the V20 and the Climate Vulnerable Forum ends in May when Barbados takes over as Chair.

The Minister disclosed that an initial meeting had been held with Prime Minister of Barbados, Mia Mottley to ensure a seamless transition of leadership with both sides looking at a day in June 2024 for the official handover ceremony.

MA/NOQ