The Information Minister, Kojo Oppong Nkrumah stated that the fundamentals of the economy of Ghana have been significantly strengthened through prudent measures put in place by the Akufo-Addo government.
According to him, as compared to 2016 when President Akufo-Addo took over power from the Mahama Administration, the fundamentals of the economy were in bad shape as inflation stood at 15.3 percent but the Akufo-Addo administration has prudently reduced it to 7.5 percent.
“The cabinet was pleased to note that inflation which measures the rate at which prices of goods and services increase, was at 15.3 percent when President Akufo-Addo took over but through a combination of prudent policies in the real sector, prudent fiscal and prudent monetary policies, inflation is now at 7.5 percent,” he revealed.
Addressing the media at Peduase in the Eastern Region, the Information Minister hinted that President Akufo-Addo has instructed the various agencies who have worked to achieve this to keep on the downward inflationary path in order for Ghanaians to continue to benefit from a relatively lower rate of a price increase.
He again indicated that the annual budget deficit which accounts for the year on year gap between revenues and expenditure has closed significantly; thus, in 2016 it was at 9.3 percent and has now been reduced to 4.7 percent this year 2020 with a legal commitment to ensure that it doesn’t exceed 5 percent.
“Mr. President is resolute in his marching orders to the Finance team to ensure this is observed,” he mentioned.
Touching on interest rates, Hon. Oppong Nkrumah said the 2016 interest rate was at 25.26 percent but it was reduced to 19.34 percent in 2017 when Akufo-Addo assumed office and is recorded a reduction to 15.20 percent as of September.
"Mr. President has been consistent in urging the central bank to explore ways to push this further down and make the cost of borrowing cheaper for the Ghanaian private sector,” he said.
The Information Minister indicated that, “Gross International reserves constituted 3.5 months of import cover as of December 2016. With gains in exports, the Akufo-Addo administration has increased it to 4.1% of import cover as of September, despite BOG's support during some of the trying moments of our currency. All in all, the evidence is that the fundamentals of the economy have been significantly strengthened”.