Ghana’s economy may appear to be improving on paper, but that recovery has yet to translate into tangible relief for ordinary citizens.
That’s the caution from Professor Patrick Asuming, an economist and lecturer at the University of Ghana Business School.
Speaking on PM Express Business Edition on JoyNews, Prof. Asuming urged restraint in celebrating recent improvements in key macroeconomic indicators, warning that many Ghanaians are still battling rising costs and economic pressure.
“It seems to me that the financial and the monetary side of the economy has performed better, and the real side seems to be lagging,” he noted. “There’s a disconnect between how people are perceiving the economy and what the macro numbers are telling us.”
He acknowledged recent gains—such as falling inflation, a drop in the Producer Price Index (PPI) from around 18 to 10 percent, improved foreign reserves, a stronger cedi, and declining Treasury bill rates—as signs of financial stabilisation.
However, he stressed that these gains have not led to a reduction in prices or widespread economic relief.
“Prices are still rising. They haven’t declined. The rate of increase has reduced, but that’s not the same as things getting cheaper,” Prof. Asuming explained.
He warned that key production costs continue to rise. “The currency has strengthened, yes, but look at the other components of production—tariffs are going up, wages are not going down, and domestic production costs keep rising.”
According to him, the government deserves credit for stabilising the fiscal side of the economy and improving Ghana’s reserve position, helped in part by favourable global commodity prices. But he said those improvements haven’t yet reached the broader population.
“Government has done well on the fiscal side. Our reserve position has improved, partly from policy direction and partly from luck with global prices of our exports.
“But when you dig deeper, it’s clear that the real economy—the part that touches people’s lives every day—isn’t recovering at the same pace.”
Prof. Asuming pointed to the first-quarter GDP data for 2025, which, while better than expected overall, masked sectoral weaknesses.
“Yes, GDP outperformed expectations, but when you break down the numbers, you see that five out of the 20 sub-sectors of the economy actually saw a decline. The ones that grew had more weight, so they pushed the overall number up. But that masks some real weaknesses.”
He concluded by warning against placing too much faith in headline figures alone.
“We shouldn’t assume that a decline in inflation means prices are coming down or that the economy is booming just because the macro indicators look better,” he said. “People are still under pressure. The average Ghanaian isn’t yet feeling the recovery.”
Prof. Asuming called for policies that close the gap between financial stabilisation and everyday economic wellbeing.
“Until the real side of the economy starts catching up, people will continue to feel that we are recovering on paper—but not in their pockets.”
ALSO READ: