President Nana Addo Dankwa Akufo-Addo says Ghana is not a ‘broke’ economy, as growth has returned to pre-COVID-19 pandemic levels.

“The country is not broke, as some propagandists want us to believe. We are handing over the country with gross international reserves of almost eight billion United States dollars (US$8 billion),” President Akufo-Addo stated.

He made this assertion while delivering his final State of the Nation Address to Parliament on Friday, January 3, 2025.

“Economic growth has also returned to the pre-COVID trajectory, with an impressive growth rate, rising from 4.8 percent in the first quarter of 2024, 7 percent in the second quarter, and 7.2 percent in the third quarter,” he said.

He noted that the growth of the economy was also reflected in the growth of private sector credit, which, in nominal terms, grew by 28.87 percent in October 2024, compared to a -7.5 percent growth recorded in the same period in 2023.

“In real terms, growth in credit to the private sector improved to 5.5 percent, compared to a contraction of 31.6 percent recorded in October 2023."

The President remarked that external balances recorded a surplus of 2.6 percent of Gross Domestic Product (GDP) in the first nine months of 2024, compared to a deficit of 6.6 percent of GDP in 2016.

“In much the same way, the trade balance has improved, standing at a surplus of US$3.85 billion, compared with a deficit of US$1.8 billion in 2016,” he said.

Regarding inflation, he stated that there had been a reduction from the 54 percent recorded in December 2022, following the effects of COVID-19 and other global economic pressures, to 23 percent in November 2024.

“Encouragingly, food prices have also begun to decline, bringing some relief to households and contributing to a reduction in the overall cost of living,” President Nana Akufo-Addo said.

The President also noted that the government had implemented significant measures to address the hardships that accompanied the economic difficulties.

These included increased budgetary allocations for the School Feeding Programme, Capitation Grant, National Health Insurance Scheme (NHIS), and the Livelihood Empowerment Against Poverty (LEAP) programme.

He stated that these achievements demonstrated the government’s firm commitment to the policies, structural reforms, objectives, and targets under the ongoing International Monetary Fund (IMF) loan-supported programme.

Meanwhile, some economic watchers have described the recent growth in the Ghanaian economy as “fragile,” calling for long-term solutions to address its fundamental weaknesses.

Speaking with the Ghana News Agency, Professor John Gatsi, the Dean of the University of Cape Coast (UCC) Business School, indicated that the recent growth had not benefitted ordinary Ghanaians.

He therefore urged the government to demonstrate control over fiscal issues by ensuring productive expenditure and implementing programs that would send signals of confidence to the international market.

“Align policies with national economic strategies and ensure that major ministries whose work is directly related to the economy do not work in silos,” the Professor of Finance said.

Prof. Gatsi also emphasized the importance of strengthening various revenue mobilization institutions and creating more fiscal consolidation, while exploring Islamic financing.

“There are difficulties across many levels, such as high food costs, inflation, and the overall cost of living. It will, therefore, take more time for Ghanaians to experience economic relief,” said Prof. Patrick Asuming, a Development Economist at the University of Ghana Business School.

He called for a broad-based consultation to produce and implement programs in line with the National Development Planning Commission’s (NDPC) long-term strategies for the country.