Ghana’s Finance Minister, Dr. Mohammed Amin Adam, has forecast that the country’s inflation rate will reach 15% by the end of 2024.
Speaking at a town hall meeting in Accra, Dr Amin Adam detailed the progress made under the Akufo-Addo-Bawumia administration in managing inflation amidst economic challenges.
He highlighted significant reductions in inflation rates since the current government took office in 2017.
Dr. Amin Adam drew a comparison between the current inflation situation and the previous administration, highlighting that inflation rates under the National Democratic Congress (NDC) were 17.7% in 2015 and 15.4% in 2016.
In contrast, the New Patriotic Party (NPP) government achieved single-digit % inflation rates of 9.4% in 2018 and 7.9% in 2019, marking a historic two-year period of single-digit inflation.
Dr Amin Adam acknowledged the global surge in inflation due to the Russian-Ukraine war and emphasized that this external factor severely impacted Ghana, with inflation peaking at 54% in 2022.
This acknowledgement is a testament to the government’s understanding of the economic challenges.
Despite this, the government’s efforts have reduced inflation to 22% by June.
Dr Amin Adam expressed strong confidence in the government’s ability to further reduce the inflation rate to 15% by the end of the year, setting a goal to return to single-digit inflation in the following year if the NPP remains in power.
“Our efforts in managing inflation have been significant,” he said. “From 54% in 2022 to 22% in June this year, we have halved the rate in 17 months.
If given another mandate, we are determined to continue this trajectory and achieve single-digit inflation.”
