We need government to spend to stimulate growth – Bokpin

Economics Professor Godfred Alufar Bokpin has called on the government to increase spending to boost economic growth, warning that cuts to expenditure are impeding the advantages of economic stability for ordinary Ghanaians. During a recent appearance on JoyNews’ PM Express, he acknowledged progress in key economic indicators but argued that Ghana’s infrastructure shortfall necessitates investment to eliminate obstacles to growth.

Bokpin emphasized that the government must invest to alleviate the issues faced by people who spend long hours on poor roads and in congested traffic, noting that inflation of 5.2% holds little significance for them.

The call for increased government spending comes before Finance Minister Dr Cassiel Ato Forson’s presentation of the 2027 Budget on November 12. The government intends to unveil a four-year New Economy program centered on investment in productive sectors. The opposition in Parliament has questioned the financing of this program, demanding that the government account for existing initiatives, such as the 24-Hour Economy, before making new commitments.

Bokpin pointed out that the government's approach to stabilization has relied heavily on spending cuts in both 2025 and 2026. He argued that such a strategy could negatively impact households and businesses. While reducing expenditure might lower inflation by weakening demand, it would not necessarily expand the economy's constrained capacity to produce.

This distinction explains why improved economic figures might not provide the comfort people need, given the poor state of infrastructure. He explained that the benefits of the current approach would take time to reach ordinary Ghanaians due to the slow implementation of macroeconomic stability restoration measures. Despite his concerns, Bokpin credited the government for making progress toward its two-year stabilisation objective, citing falling inflation, interest rates, and a resilient currency.