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World Bank/IMF Spring Meetings in Washington D.C: Ghana’s economy gains momentum towards stability – Finance Minister

April 23, 2024
in News
World Bank/IMF Spring Meetings in Washington D.C: Ghana’s economy gains momentum towards stability – Finance Minister
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Ghana’s econo­my is on a prom­ising trajectory towards stability, says the Minis­ter of Finance, Mohammed Amin Adam.

Speaking at a press conference following the World Bank/IMF Spring Meetings in Washington D.C. on Sunday, April 21, 2024, Minister Adam highlighted the country’s ro­bust economic progress and strong recovery.

One of the achievements mentioned by the minister was the significant reduction in the primary deficit. At the close of 2022, Ghana recorded a primary deficit of 4.3 per cent of the Gross Domestic Product (GDP). However, by the end of 2023, this deficit had shrunk dramatically to just 0.3 per cent, marking a four-percentage point decrease.

“This reduction in the primary deficit from 4.3 per cent of GDP in 2022 to 0.3 per cent in 2023 represents about a four percentage point decline,” the minister ex­plained.

Such a reduction in deficit does not only demonstrate fiscal respon­sibility, but also indicate a strength­ening economy capable of manag­ing its financial obligations more effectively.

Anticipating further positive developments, Minister Adam ex­pressed his optimism about Ghana’s economic future. He projected a surplus of 0.5 per cent of GDP by the end of the current year, with expectations rising to 1.5 per cent of GDP by next year.

“Progress is good, recovery is strong, and we are heading very quickly to stabilisation, which is what we need to generate growth,” Mr Adam stated confidently.

The minister’s remarks come as encouraging news as govern­ment has been striving to bolster the economy and attract foreign investment. Achieving a surplus in the near future could pave the way for increased government spending on infrastructure, healthcare, and education, thereby benefitting the nation’s citizens.

The minister’s views were strongly backed by IMF Mission Chief for Ghana, Stéphane Roudet, who stat­ed in response to a question from journalists in a separate briefing that the worst is over for Ghana.

He stated, “I think if the pro­gramme continues to be implement­ed the same way it has been imple­mented in the past, yes, we may have seen the worst, but fully restoring macroeconomic stability requires continued implementation of the programme. There is no doubt about this. I think this has been the message across the board.”

He continued, “It has been the same from the managing director when she was in Accra a few weeks ago. The programme needs to con­tinue to be implemented to make sure that those gains are entrenched and further gains are being realised over the next few years.”

Stability in the economy will create a conducive environment for businesses to thrive, leading to job creation and improved living stan­dards for Ghanaians.

However, while the recent eco­nomic progress is commendable, it will be essential for the government to continue implementing sound fiscal policies and promoting sus­tainable growth to ensure long-term stability and prosperity.

 BY TIMES REPORTER

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : GhanaianTimes – https://www.ghanaiantimes.com.gh/world-bank-imf-spring-meetings-in-washington-d-c-ghanas-economy-gains-momentum-towards-stability-finance-minister/

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