Akufo-Addo: Handing Over $8 Billion Reserves to Mahama

President Nana Addo Dankwa Akufo-Addo has refuted claims that Ghana’s economy is broke, asserting that his administration is leaving behind nearly $8 billion in gross international reserves. This figure, he said, exceeds the $6.2 billion his government inherited in 2017. Speaking during his final State of the Nation Address in Parliament, the President outlined the significant economic strides made during his tenure, despite global challenges such as the COVID-19 pandemic.

Economic growth, he highlighted, had rebounded to pre-COVID levels, with a projected growth rate of 6.3% in 2024, compared to the 3.4% inherited in 2017. Quarterly growth figures for 2024 showed steady improvement, from 4.8% in the first quarter to 7.2% by the third quarter.

The President emphasized that private sector credit had also shown remarkable growth. In nominal terms, credit grew by 28.87% in October 2024, up from a contraction of 7.5% in 2023. In real terms, private sector credit growth rebounded to 5.5%, a significant improvement from the 31.6% contraction recorded a year earlier.

External balances have also improved, with the current account surplus standing at 2.6% of GDP in the first nine months of 2024, compared to a 6.6% deficit in 2016. The trade balance, which had recorded a deficit of $1.8 billion in 2016, now boasts a surplus of $3.85 billion.

Headline inflation, though still high at 23% in November 2024, had significantly decreased from 54% in December 2022. This decline was attributed to the government’s efforts to stabilize the economy and address the impact of global economic pressures. Falling food prices further contributed to reducing the cost of living, bringing relief to households nationwide.

The President also noted measures taken to mitigate economic hardships, including increased funding for social programs like the School Feeding Programme, Capitation Grant, National Health Insurance Scheme, and the Livelihood Empowerment Against Poverty initiative.

On public debt, Akufo-Addo reported a reduction in the debt stock by GH₵46.8 billion, bringing it down to GH₵761.01 billion in October 2024 from GH₵807.79 billion in September. The public debt-to-GDP ratio fell from 79.2% to 74.6% in the same period, with projections to further reduce to 55% in net present value terms, ensuring Ghana’s debt sustainability.

President Akufo-Addo urged the incoming government to continue these policies, expressing optimism about Ghana’s economic future and reaffirming the country’s commitment to meeting its debt obligations, including a $346 million Eurobond coupon payment on January 3, 2025.