The Minority in Parliament, led by former Finance Minister Dr. Mohammed Amin Adam, has presented a comprehensive assessment of Ghana’s economic performance, contradicting President John Dramani Mahama’s State of the Nation Address (SONA).
Dr. Adam’s statement provides a detailed analysis of the economy, highlighting significant achievements in real GDP growth, trade balance, and financial sector performance.
According to Dr. Adam, President Mahama’s SONA was misleading, as it focused primarily on inflation and exchange rates, ignoring other crucial economic indicators.
Dr. Adam emphasized that the economy has rebounded strongly, with impressive growth in real GDP.
He noted that the average growth in real GDP for the first three quarters of 2024 was 6.4%, exceeding the IMF target of 4%.
Dr. Adam also highlighted the significant improvement in the trade balance, which maintained a surplus trend since 2017, ending 2024 with a surplus of 5.9% of GDP.
This achievement, he argued, demonstrates the strength of Ghana’s external sector. In contrast, President Mahama’s administration recorded a deficit of 2% of GDP in 2016.
The former Finance Minister also disputed President Mahama’s claim that the financial sector is struggling.
He cited evidence from the Bank of Ghana’s recent publication, which shows that the sector has become stronger, with banks posting impressive financial ratios and returning to profitability.
Dr. Adam noted that the annual growth in Total Assets of the financial sector as at the end of 2024 was 33.8%, while Total Deposits grew by 28.8%.
Dr. Adam’s statement also addressed President Mahama’s criticism of the previous administration’s handling of inflation.
He explained that the COVID-19 pandemic and global supply shocks led to a surge in inflation, which peaked at 54% in 2022.
However, Dr. Adam noted that the inflation rate has since declined to 23%, demonstrating the effectiveness of the previous administration’s policies.
The Minority’s response to the SONA highlights the importance of accurate and comprehensive information in assessing the state of the economy.
Dr. Adam’s statement provides a more nuanced understanding of Ghana’s economic performance, emphasizing the need to consider multiple indicators, not just inflation and exchange rates.
-BY Daniel Bampoe
