Economist and Professor of Finance, Prof. Godfred Alufar Bokpin, has stated that Ghana’s economic recovery should be measured by improvements in the living standards of citizens rather than gains in debt sustainability, inflation and other macroeconomic indicators alone.
Speaking at the Ghana National Chamber of Commerce and Industry (GNCCI) Mid-Year Budget Review Seminar in Accra on Wednesday, July 29, Prof. Bokpin acknowledged the country’s progress in restoring macroeconomic stability but cautioned that many Ghanaians were yet to experience the benefits through better jobs, improved infrastructure and quality public services.
“Macroeconomic stability is a means to an end. The end is economic transformation,” he said.
Macroeconomic gains, but citizens left behind
His comments come as Ghana records improvements in several key economic indicators. Inflation inched up to 5.3 per cent in June 2026, while the economy expanded by 6.4 per cent in the first quarter of 2026 after recording 6 per cent growth in 2025. The country has also restored debt sustainability ahead of schedule, moving from debt distress to a moderate risk classification.
However, Prof. Bokpin argued that those gains alone do not reflect the true state of the economy if they fail to improve the lives of ordinary citizens.
“The true test of economic recovery is whether people can find decent jobs, access reliable public services, and experience meaningful improvements in their quality of life. We cannot celebrate these gains in isolation. You have not arrived,” he stated.
Jobless growth a major concern
He expressed concern that recent economic growth had not generated enough formal employment, particularly for the growing number of young people entering the labour market each year.
According to data from the Ghana Statistical Service, the national unemployment rate stood at 13 per cent in the third quarter of 2025, while youth unemployment among persons aged 15 to 24 reached 32.4 per cent. About 1.34 million young people in that age group were not in employment, education or training during the period.
Prof. Bokpin noted that approximately 500,000 people entered the labour market each year, warning that the economy was not creating enough jobs to absorb the growing workforce.
“We have a target for inflation, we have a target for growth, we have a target for fiscal balance, but there is no nationally determined target for employment generation in the budget,” he said.
Food insecurity persists despite economic gains
Prof. Bokpin also pointed to the persistence of social challenges despite the improving macroeconomic outlook. He noted that food insecurity remained high, with Ghana Statistical Service data estimating that 38.1 per cent of households experienced food insecurity in the third quarter of 2025.
He called for a shift from what he described as “jobless growth” to an economic development model that deliberately promotes employment creation and expands opportunities for the youth.
Channel fiscal space into productive sectors
He urged the government to channel the fiscal space created through debt restructuring and ongoing fiscal reforms into sectors that directly stimulate economic growth and improve livelihoods.
According to him, investments in infrastructure, education, healthcare and productive industries would have a greater impact on economic transformation than focusing solely on reducing debt and inflation.
Prof. Bokpin also cautioned against excessive austerity in the face of Ghana’s infrastructure deficit, arguing that fiscal consolidation alone could not achieve long-term economic transformation.
“We cannot celebrate austerity in the midst of huge infrastructure deficits,” he said.
Post-IMF challenges remain
He further stressed the need for fiscal and monetary policies that support the real sector of the economy, where jobs, incomes and wealth are created, arguing that sustainable growth must translate into tangible benefits for citizens.
“It is in the real sector that jobs are created. It is in the real sector that income is generated. The fiscal and monetary sectors must complement each other to make the real sector the winner,” he said.
Prof. Bokpin added that although Ghana had transitioned from the International Monetary Fund-supported programme to the Policy Coordination Instrument, the country still faced significant development and financing needs.
Ghana concluded its 17th IMF programme in 2026 after implementing measures aimed at restoring macroeconomic stability, including debt restructuring, spending restraint and structural reforms. The country has now entered into a 36-month Policy Coordination Instrument, a non-financing arrangement designed to sustain reforms, reinforce policy credibility and support investor confidence.
He therefore urged policymakers to prioritise policies that deliver measurable improvements in the welfare of Ghanaians.
