Audio By Carbonatix
Ghana’s economic recovery should be assessed by improvements in citizens' living conditions rather than by gains in debt sustainability, inflation, and other macroeconomic indicators alone, Prof. Godfred Alufar Bokpin, Economist and Professor of Finance, said on Wednesday.
He said although Ghana had made notable progress in restoring macroeconomic stability, many citizens were yet to feel the benefits through improved employment opportunities, better infrastructure and access to basic services.
Speaking at the Ghana National Chamber of Commerce and Industry (GNCCI) Mid-Year Budget Review Seminar in Accra, Prof. Bokpin cautioned against excessive celebration of recent economic gains.
“Macroeconomic stability is a means to an end. The end is economic transformation,” he said.
His remarks come amid signs of improvement in key economic indicators.
Ghana’s inflation rate declined to 5.3 per cent in June 2026, while the economy recorded a growth rate of 6.4 per cent in the first quarter of 2026 after expanding by six per cent in 2025.
The country has also restored debt sustainability ahead of schedule and moved from debt distress to a moderate risk classification.
Despite these gains, labour market and welfare indicators continue to raise concerns.
Data from the Ghana Statistical Service showed that the national unemployment rate stood at 13 per cent in the third quarter of 2025, while unemployment among persons aged 15 to 24 years reached 32.4 per cent, with about 1.34 million young people in that age bracket were not in employment, education or training.
The Ghana Statistical Service also estimated food insecurity at 38.1 per cent in the third quarter of 2025, highlighting persistent challenges facing households despite improvements in macroeconomic performance.
Prof. Bokpin said the true test of economic recovery was whether citizens could secure decent jobs, enjoy reliable public services and experience tangible improvements in their quality of life.
“We cannot celebrate these gains in isolation. You have not arrived,” he stated.
He observed that economic growth in recent years had not translated into sufficient formal employment, particularly for the thousands of young people entering the labour market annually.
He called for greater investment in infrastructure, noting that poor roads, traffic congestion and inadequate public services continued to undermine productivity and raise the cost of doing business.
Prof. Bokpin noted that the fiscal space created through debt restructuring and fiscal reforms should be channelled into growth-enhancing sectors such as infrastructure, education, healthcare and productive industries.
He said reducing debt and inflation alone would not transform the economy if the underlying challenges affecting citizens remained unresolved.
He stressed the need for fiscal and monetary policies to support the real sector of the economy, where jobs, incomes and wealth are generated.
Prof Bopkin said the country still faced significant development and financing needs although on it had transition from the International Monetary Fund-supported programme to the Policy Coordination Instrument,
He added that policymakers should focus on delivering outcomes that directly improved the welfare of citizens.
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