‘Inflation of 5.2% means nothing’ to someone spending 12 hours travelling to Kumasi – Bokpin

Economics Professor Godfred Alufar Bokpin contends that inflation of 5.2% holds little significance for individuals facing lengthy commutes to Kumasi, emphasizing the need for economic improvements to translate into better living conditions. Speaking on Joy News' PM Express, he praised the government's efforts in stabilizing the economy but cautioned that heavy reliance on spending cuts is hampering the benefits for ordinary Ghanaians.

"If someone is spending nine to 12 hours to get from here to Kumasi, a 5.2% inflation rate means nothing to that person," Bokpin remarked, highlighting the challenges commuters face on the Accra-Tema Motorway. The professor argued that the methods employed to restore macroeconomic stability may take some time to yield tangible benefits for the average citizen.

He explained that while the approach has helped cool the economy by curbing demand, it has not sufficiently expanded Ghana's constrained production capacity. Bokpin further pointed out that a nation with significant infrastructure deficiencies cannot fully appreciate the impact of extensive austerity measures. Despite these concerns, he acknowledged that the government had largely succeeded in restoring stability during its initial two years of governance, noting the decline in inflation, interest rates, and the cedi's relative stability. He suggested that the ensuing phase should shift from stabilization to economic transformation.