Ghana’s Economy Is Rebounding With 4.7% Growth In First Quarter Of 2024- Finance Minister

Ghana’s economy is showing strong signs of recovery, registering healthy growth in the first quarter of 2024, the Minister for Finance, Mohammed Amin Adam, has said.

Presenting the Mid-Year Budget Review on Tuesday (23 July 2024) on the floor of parliament, the minister said it is evident that Ghana is on the right path.

“The choices we have made and the policies we are implementing are yielding results. We have reversed the negative trends. All the indicators are looking better,” Amin Adam said.

“Our economy grew by 4.7% in the first quarter of this year, exceeding our expectations. This growth is a testament to the resilience of our economic policies and the hard work of Ghanaians,” he said.

The Finance Minister attributed this positive performance to a combination of effective policy measures, robust economic management and the steadfast spirit of the Ghanaian people. He argued that the government’s strategic interventions had created a stable and conducive environment for growth.

Focus on SMEs

The government has kept its focus on key areas to drive economic recovery, including fiscal discipline, investment in critical sectors and support for small and medium-sized enterprises (SMEs). It has also emphasised maintaining fiscal discipline to sustain the current momentum of growth, the minister said.

“Despite the global economic headwinds, our government remains steadfast in its commitment to fiscal discipline. This discipline is crucial for maintaining economic stability and fostering a conducive environment for investment and growth,” Dr Adam said.

One significant contributor to the economic rebound has been the government’s investment in infrastructure. Projects such as roads and hospitals under the Agenda 111 project have not only created jobs but also stimulated economic activity.

The government’s support for SMEs has also been a critical factor in the economic recovery, Dr Amin Adam told Parliament. Recognising the vital role that SMEs play in the economy, the government mobilised GHC8.2 billion to support these enterprises. This funding aims to address challenges such as 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,” Dr Adam said. “Our substantial support for SMEs underscores our commitment to ensuring their sustainability and growth.”

The Finance Minister also pointed to improvements in inflation and exchange rate stability as crucial elements of the economic recovery. These improvements have brought much-needed relief to businesses and households, creating a more stable economic environment.

Inclusive growth

Dr Adam acknowledged the global economic challenges that continue to pose risks but expressed confidence in the resilience of the Ghanaian economy.

The minister argued 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 highlighted the government’s efforts to enhance social services and improve the quality of life for all Ghanaians.

Significant investments have been made in health care, education and social protection programmes. For instance, the government has allocated GHC5.4 billion to support the Livelihood Empowerment Against Poverty (LEAP) programme, the National Health Insurance Scheme and the school feeding programme

Dr Adam said that these investments are expected to provide essential social services and support to the most vulnerable segments of society.

He emphasised that these social investments are in line with 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,” he said. “We are committed to building a society where everyone can benefit from the nation’s progress.”