President John Dramani Mahama has assured Ghanaians that the country’s economy is now resilient enough to withstand global crises, including conflicts in the Middle East, following efforts to stabilise key macroeconomic indicators.
Speaking at the sod-cutting ceremony for the construction of a 24-hour market at Dormaa in the Bono Region, President Mahama noted that crises such as the COVID-19 pandemic and the Russia-Ukraine war have exposed vulnerabilities in countries with weak currencies.
He emphasized that after stabilizing Ghana’s economy, the nation is now better positioned to weather external shocks.
“Nana, I believe that the way we’ve put things in place has made the economy strong this year. Regarding the war between the USA, Israel, and Iran, by God’s grace, our economy can stand it,” he stated.
The President highlighted improvements in macroeconomic stability, noting that inflation, which was previously at 23.4%, has dropped to 3.3%. While prices may still rise, the rapid increases seen in the past have slowed, reflecting effective monetary measures.
He also praised the performance of the cedi, which has strengthened against the dollar, euro, and pound.
He said when they took over from the previous administration, the dollar had risen to 16 – 17 cedis. Currently, the exchange rate at the Bank of Ghana is 10.7 to a dollar, and the cedi is expected to improve by around 40% relative to other major currencies by 2027.
On debt management, President Mahama said the government undertook restructuring negotiations with global creditors, extending repayment timelines to allow the country to settle its loans. Domestically, pensioners and other bondholders who were initially denied payments due to financial constraints have had their payments adjusted and schedules extended.
“When we took office, the debt-to-GDP ratio was 66%. Through discussions with the IMF, we set a program to reduce this to 45% by 2028. By God’s grace, we have already achieved 45% within just one year,” he added, stressing the progress made in strengthening Ghana’s fiscal position.
President Mahama concluded by emphasizing that the combination of monetary stability, a strengthened cedi, and effective debt management will ensure that Ghana’s economy remains resilient in the face of global shocks, safeguarding national development and citizens’ livelihoods.
Source: Mubarak Yakubu/angelonline.com.gh
