‘Government has done quite well’ in restoring macroeconomic stability – Bokpin

Economics professor Godfred Alufar Bokpin has praised the government's efforts in restoring macroeconomic stability, citing key indicators such as declining inflation, reduced interest rates, and the cedi maintaining its value against major trading currencies. Speaking on Joy News’ PM Express, Bokpin stated that the administration achieved these goals during its first two years in power. "I would say they've done quite well in restoring macroeconomic stability," he said.

An examination of the 2026 Budget revealed clear signs of progress, with both inflation and interest rates falling. The cedi also demonstrated resilience against major trading currencies, despite increased pressure. However, Bokpin cautioned that the process of stabilisation is ongoing, acknowledging that the task remains unfinished.

His comments come as the country prepares for the presentation of the 2027 Budget, scheduled for Thursday, November 12, by Finance Minister Dr. Cassiel Ato Forson. The new budget is expected to lay out the government's New Economy agenda and priorities for creating jobs and boosting investment. Some members of the opposition have questioned how the government intends to fund this agenda, demanding accountability regarding existing flagship programmes.

They argue that while economic indicators have shown improvement, these gains have yet to translate into tangible benefits for everyday life for Ghanaians.

Bokpin also pointed out the limitations of the government's approach, which relied heavily on spending cuts to restore stability. While this strategy helped lower inflation by reducing demand, it also curbed spending necessary to address infrastructure gaps and stimulate economic growth. He used the example of lengthy journeys on major roads to illustrate how improved economic figures might not offer immediate comfort to the populace.

"If somebody is spending nine to 12 hours to travel from here to Kumasi, a 5.2% inflation rate means nothing to that person," he noted.

Bokpin emphasized that the method used to stabilize the economy has meant that households will have to wait for the benefits of the government's efforts. Despite these challenges, he affirmed that the government has largely met its initial stabilisation objective, which aligns with the IMF's program. Bokpin sees the proposed New Economy agenda as a step towards transitioning from stabilisation to economic transformation.