President John Dramani Mahama has stated that
Ghana’s economy is experiencing a strong recovery under his leadership,
revealing that the country has climbed from the 11th to the 8th largest economy
in Africa in just over a year.
Speaking during his “Resetting Ghana” tour in the
Savannah Region, the President highlighted major gains in key economic
indicators, including inflation, foreign reserves, exchange rate stability, and
GDP growth.
According to him, Ghana’s economy has expanded from
nearly $80 billion at the start of his administration to about $114 billion.
“Today, Ghana has moved from the 11th biggest
economy in Africa to the 8th biggest economy on the continent,” President
Mahama told residents and stakeholders.
He attributed the progress to prudent economic
policies and fiscal discipline implemented after taking over an economy
operating under an IMF-supported programme.
President Mahama noted that inflation has remained
relatively stable despite global economic pressures. He explained that
inflation dropped to 3.2% before rising slightly to 3.4% due to external
factors, which he described as a sign of economic resilience.
“We have achieved macroeconomic stability,” he
said.
The President also disclosed that Ghana’s foreign
reserves have risen to $13.9 billion, enough to cover 5.7 months of imports. He
added that government aims to increase reserves further to protect the economy
from future global shocks.
Touching on Ghana’s engagement with the
International Monetary Fund (IMF), President Mahama said his administration
restored confidence in the programme after it had previously gone off track.
He explained that strict economic reforms
introduced by government helped realign the programme, resulting in positive
assessments from IMF review missions.
“The final mission just left Ghana last week and
they have given us a satisfying mark for performance,” he stated, adding that
Ghana is expecting approval for the final $380 million tranche under the
programme.
Despite the progress made, the President said
government would not celebrate Ghana’s expected exit from the IMF bailout
programme prematurely.
“We are not going to have a kinky party because we
know that our economy still needs a lot of work,” he remarked.
He revealed that Ghana would transition from the
IMF’s Extended Credit Facility to a Policy Coordination Instrument, which will
allow continued monitoring of reforms and fiscal discipline without additional
bailout support.
“It is my hope that this is the last time Ghana
will go to the IMF for a bailout,” he added.
President Mahama also highlighted growth in
non-traditional exports, saying earnings from the sector increased from $3.83
billion to over $5 billion within a year.
According to him, the economic expansion will help
create jobs and provide government with more resources to invest in
infrastructure, agriculture, roads, and education.
He further praised reforms in the disbursement of
the District Assemblies Common Fund, indicating that 80% of allocations are now
transferred directly to district assemblies on time, compared to less than 40%
previously.
The President said the improved releases are
already supporting projects such as schools, CHPS compounds, and 24-hour
markets across districts.
He also announced plans for every one of Ghana’s
261 districts to receive a 24-hour economy market to boost local trade and
support farmers and traders.
“Markets are centres where money circulates among
the people,” President Mahama noted, stressing the importance of strengthening
economic activity at the grassroots level.
Comments
No comments yet.