In 2024, Ghana’s economy is reportedly stabilizing, according to the Institute of Economic Research and Public Policy. They dispute claims of an economic crisis made by President Mahama and highlight significant GDP growth, reduced inflation, and improved debt management. Although challenges remain, indicators suggest a positive trajectory toward recovery supported by structural reforms and IMF backing.
As of 2024, Ghana’s economy demonstrates considerable stability, according to the Institute of Economic Research and Public Policy (IERPP). This policy think tank has refuted President John Dramani Mahama’s assertion of an economic crisis, instead highlighting a recovery phase. The IERPP clarified that economic indicators show improvement, dismissing claims of a looming crisis made during Mahama’s February 27 State of the Nation Address.
IERPP reported that Ghana’s Gross Domestic Product (GDP) growth reached 3.2%, driven by a resurgence in cocoa production and favorable global cocoa prices. Additionally, inflation has dropped to 22.8% as of the second quarter, while the cedi trades consistently between GH₵12 and GH₵13 per USD. Notably, public debt stabilization at 75-80% of GDP, along with a narrowing fiscal deficit and slight reduction in youth unemployment, signifies positive macroeconomic progress.
The institute praised aggressive fiscal and monetary reforms for preventing an economic crisis, emphasizing successful debt restructuring that has lowered public debt from 92.4% to 75-80% of GDP. Concurrently, inflation has significantly decreased—from 54.1% in 2022 to 15%—and food inflation has also eased. This stabilization is attributed to improved foreign reserves, which cover 3.5 months of imports and bolster investor confidence.
In terms of structural resilience, economic diversification has reduced reliance on oil, with growth in non-oil sectors such as ICT and agribusiness. Social safety nets, like the LEAP initiative benefiting 2.5 million households and the Free Senior High School program, have mitigated the impact of austerity measures on vulnerable populations. These actions underscore a shift toward cautious economic stabilization, moving away from crisis management.
Despite facing significant challenges in previous years, the IERPP noted that 2024 represents a turning point for Ghana’s economy. While issues such as youth unemployment and public debt remain, indicators of recovery are evident. Structural reforms, IMF support, and favorable commodity conditions are pivotal to Ghana’s pathway to sustained economic stability, highlighting the need for continued diversification and investment in critical areas like anti-corruption and climate resilience.
Supporting this view, Former Finance Minister Dr. Mohammed Amin Adam asserted that economic growth was rebounding strongly, contrary to Mahama’s claims of dire circumstances. He remarked on the previous government’s legacy of $8.9 billion in gross international reserves, essential for stabilizing the cedi under the current administration.
Moreover, Dr. Amin Adam criticized President Mahama for what he termed propaganda during the recent State of the Nation Address, neglecting to acknowledge beneficial economic factors from the past administration. Conversely, President Mahama underscored the hardship faced by citizens and called for prompt action to address various economic challenges, including high debt levels and inflation.
In conclusion, the IERPP’s findings and the perspectives of former officials reveal a contrasting view of Ghana’s economic landscape as of 2024. The signs of economic recovery and stabilization stand in contrast to claims of ongoing crises, reflecting a complex narrative that emphasizes both progress and persistent challenges in the economy.
In summary, the Institute of Economic Research and Public Policy asserts that Ghana’s economy has stabilized significantly by 2024, contesting President Mahama’s claims of ongoing crisis. Indicators such as GDP growth, decreasing inflation, and improved debt management highlight a recovery phase. Furthermore, former officials emphasize the importance of acknowledging previous economic successes to reinforce the narrative of gradual recovery despite lingering challenges.
Original Source: 3news.com
