Spending cuts delaying benefits of economic stability – Bokpin

Economics professor Godfred Alufar Bokpin asserts that Ghana's strategy of using spending cuts to stabilize the economy is hindering the benefits Ghanaians anticipate from improved economic indicators. Speaking on JoyNews' PM Express, he stated that while the government has made progress, this approach is stifling demand and neglecting infrastructure issues.

"You will get the result, but the impact will not be felt by Ghanaians," Bokpin warned. His comments come ahead of the 2027 Budget presentation on November 12. The government's proposed New Economy program aims to shift focus to investment, production, and job creation. However, the minority in Parliament is skeptical about how the government will finance the $10 billion program and demands a detailed funding plan and accountability for previous commitments under the 24-Hour Economy initiative.

Bokpin emphasized the disconnect between economic figures and the daily struggles of Ghanaians, citing long travel times between Accra and Kumasi as an example. He criticized the policy approach for its delayed impact on the lives of Ghanaians. Despite his concerns, Bokpin acknowledged the government's progress in reducing inflation, interest rates, and stabilizing the currency, which aligns with the IMF's stabilization program.

He expressed confidence in the administration's stated objective of restoring macroeconomic stability within the first two years of its term.