Gross International Reserves reached 3.1 months of import as at end June 2024 – Amin Adam

Ghana’s economy is exhibiting encouraging indications of growth and recovery, according to Finance Minister Dr. Mohammed Amin Adam.

On Tuesday, July 23, 2024, the Minister gave an address to the Parliament in which he outlined the government’s intentions for the rest of the year and highlighted significant accomplishments.

Despite expressing optimism in Ghana’s economic trajectory, Dr. Adam acknowledged the problems facing the world economy at the beginning of his speech. The rise in overseas reserves is one of the most noteworthy accomplishments listed in the study. According to the Minister, Ghana’s foreign reserves have increased dramatically and currently cover 3.1 months’ worth of imports. This indicates a significant improvement and offers a more robust defense against external shocks.

“Gross International Reserves reached 3.1 months of import as at end June 2024 against 2.5 months of imports in the same period last year.

“Mr. Speaker, it is evident that we are on the right trajectory. Things are looking better than we anticipated. 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,” he said.

The Minister credited proactive discussions with foreign partners and efficient budgetary management for this accomplishment. Important support has been obtained as a consequence of fruitful discussions with the International Monetary Fund (IMF), including a $600 million tranche from the IMF and a $2.8 billion debt reduction from the Paris Club and other creditors. In addition to strengthening reserves, this assistance has helped to stabilize the economy.

A major worry for a lot of Ghanaians, inflation has significantly decreased. Since 2022, the rate of inflation has decreased by 31 percentage points, and the administration is determined to keep it that way. The cost of living for residents should decrease as a result of the improvement in inflation rates and the exchange rate stabilization.

Dr. Adam also highlighted the government’s significant investments in social programs and infrastructure. Over GH¢5.4 billion has been disbursed for various social programs, including LEAP, the School Feeding Programme, and the NHIS. Additionally, nearly GH¢10 billion has been invested in the road sector since January 2024.

The government continues to prioritize education, allocating large sums of money to the Free SHS initiative. The Free SHS initiative received GH¢1.5 billion in funding in the first half of 2024, guaranteeing that young people would have access to high-quality education. This investment is a component of the larger plan to develop a workforce that is knowledgeable and proficient for the future.

The Finance Minister did not hold back when talking about the difficulties and dangers that lie ahead. Even while there has been a lot of progress, he said, the nation still has to exercise care. Important economic hazards that might affect Ghana’s growth trajectory include shifting commodity prices and unpredictability in the world economy. Nevertheless, he voiced hope that Ghana will successfully manage these difficulties with ongoing budgetary restraint and smart planning.

Source: Ghanatodayonline.com