By 2024, Ghana’s economy is reportedly stabilizing according to the IERPP, contradicting President Mahama’s crisis claims. Key indicators show GDP growth at 3.2%, reduced inflation, and stabilizing debt levels. Former Finance Minister Dr. Amin also disputed Mahama’s claims, emphasizing the achievements of the previous administration. Despite challenges, progress indicates a recovery is underway, with continued reforms needed for sustainable growth.
In 2024, the Institute of Economic Research and Public Policy (IERPP) asserted that Ghana’s economy exhibited signs of stabilization, countering President John Dramani Mahama’s claims of an economic crisis. According to the IERPP, Ghana is experiencing a recovery phase rather than an outright crisis, as highlighted in their reaction to Mahama’s recent State of the Nation address delivered on February 27.
The IERPP reported a modest increase in Gross Domestic Product (GDP) growth to 3.2%, driven by enhanced cocoa production and favorable global cocoa prices. Inflation rates have decreased to 22.8%, while the cedi maintained a steady exchange rate of GH₵12–13 against the dollar. The stabilization of public debt at 75–80% of GDP and a narrowing fiscal deficit further reflects positive economic signs, with youth unemployment slightly declining to 25%.
The think tank emphasized that aggressive fiscal and monetary reforms have successfully averted an economic crisis. Notable achievements include a substantial reduction of public debt from 92.4% to 75–80% of GDP due to effective debt restructuring, significantly lessening default risks. Inflation control measures have seen headline inflation drop from 54.1% in 2022 to 15% in 2024 and food inflation from 35% to 27%.
Despite the cedi experiencing significant decline in 2022, it has stabilized thanks to improved foreign reserves, indicating restored investor confidence. Furthermore, the IERPP noted the importance of economic diversification as non-oil sectors contributed positively, while social protection programs such as LEAP benefited vulnerable populations. The fiscal discipline reinforced by the IMF program has enhanced Ghana’s credibility and laid the groundwork for sustainable recovery.
While acknowledging difficulties such as persistent youth unemployment and debt, the IERPP stated that 2024 signals a departure from crisis management towards cautious economic stabilization. Former Finance Minister Dr. Mohammed Amin Adam also contested Mahama’s portrayal of the economy, asserting that economic growth has rebounded significantly. He highlighted the $8.9 billion in gross international reserves left by the previous administration as a crucial asset to support the cedi.
Dr. Amin accused President Mahama of using propaganda in his address, neglecting to mention the positive contributions of international reserves. In contrast, Mahama stressed the need for urgent measures to address economic challenges, stating that the economy was in crisis and citizens were suffering due to high inflation and public debt. He signaled his government’s commitment to reforms aimed at restoring stability and alleviating hardship for households and businesses.
The Institute of Economic Research and Public Policy has argued that Ghana’s economy is stabilizing, countering claims of a crisis made by President Mahama. Key indicators such as GDP growth, declining inflation, and stabilized debt reflect a recovery phase. Nevertheless, ongoing challenges remain, necessitating a focus on reforms to ensure sustainable economic progress.
Original Source: 3news.com
