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

Economics Professor Godfred Alufar Bokpin says the government has done well to restore macroeconomic stability, citing falling inflation, lower interest rates, and the cedi’s relative resilience.

Speaking on Joy News’ PM Express on Tuesday, he said the gains reflected the administration’s stated priority for its first two years.

“I would say they've done quite well in restoring macroeconomic stability.”

Assessing performance against the 2026 Budget, Prof Bokpin said there was clear evidence of progress. Inflation and interest rates had fallen. The cedi was also holding its own against major trading currencies despite renewed pressure.

But he cautioned that stabilisation remained a work in progress.

“The question is, we are still restoring macroeconomic stability. Let me put it that way,” he said.

His assessment comes ahead of the 2027 Budget, which Finance Minister Dr Cassiel Ato Forson is scheduled to present on Thursday, November 12.

The budget is expected to outline the government’s New Economy agenda and priorities for jobs and investment.

The Minority has questioned how the government plans to finance the agenda and demanded an account of existing flagship programmes. It argues that improvements in economic indicators have yet to translate into better living conditions.

Prof Bokpin also highlighted the limits of the government’s approach. He said the 2025 and 2026 budgets relied heavily on spending cuts to restore stability.

He explained that this approach reduced demand and helped bring inflation down. But it also constrained spending needed to address infrastructure gaps and stimulate growth.

“If you choose that approach, you will get the result, but the impact will not be felt by Ghanaians.”

He pointed to difficult journeys on major roads as an example of why better economic figures may offer little comfort.

“If somebody is spending nine to 12 hours to travel from here to Kumasi, inflation of 5.2% means nothing to that person.”

He said the method used to stabilise the economy meant households would have to wait for the benefits.

“It's simply because the approach we have adopted in restoring macroeconomic stability is going to take a while to reflect in the lives of Ghanaians.”

Still, Prof Bokpin said the government had largely delivered on its initial stabilisation objective. He described that objective as consistent with the IMF programme.

He linked the proposed New Economy agenda to the government’s intention to move from stabilisation into economic transformation.