Ghana has successfully stabilized its economy, achieving significant improvements in key macroeconomic indicators. The Institute of Economic Affairs (IEA) now urges the government to leverage these gains for a jobs-focused economic transformation. This strategic shift aims to translate macroeconomic stability into tangible benefits for Ghanaian households and businesses.
The call comes as Ghana records robust economic performance. Real Gross Domestic Product (GDP) growth reached 6.4 percent in the first quarter of 2026, surpassing the full-year target of 4.8 percent. Inflation has also seen a dramatic reduction, falling from 23.8 percent in December 2024 to 5.4 percent by December 2025, before a slight rise to 5.7 percent in June 2026. These improvements set the stage for deeper structural reforms.
This positive trajectory fits within Ghana's broader economic narrative of navigating post-pandemic challenges and debt restructuring efforts. The fiscal position has strengthened, with a primary balance surplus of 0.9 percent of GDP by June 2026, against a full-year target of 1.95 percent. Gross international reserves have also increased, now covering five months of imports. The debt-to-GDP ratio has declined from 61.8 percent in 2024 to 45 percent by June 2026, indicating improved fiscal health. These figures highlight Ghana's capacity for economic recovery and prudent management.
Professor Alexander Bilson Darku, Director of Research at the IEA, emphasized this critical transition. He stated, “Ghana’s stabilisation is done. Now is the time to turn macro stability into real economic transformation, jobs and resilience.” He made these remarks during the IEA’s assessment of the 2026 Mid-Year Budget Review in Accra. Professor Darku stressed the need for transformational budgeting, focusing on growth-enhancing infrastructure and maintaining fiscal discipline.
The implications of this call are far-reaching for Ghana’s economic future. Decision-makers must now focus on policies that ensure economic expansion creates decent jobs and improves household incomes. This includes targeted investments in agriculture, moving from subsistence farming to industrial production. Measures to improve the transmission of lower policy rates into affordable credit for businesses are also crucial. Strengthening exchange-rate stability through export diversification and stronger foreign exchange regulation will further support sustainable growth. The government must also reform natural resource regimes to increase the state's share of revenues and promote local value addition.
Professor Darku raised concerns about the current structure of economic growth. Services expanded by 7.1 percent, while agriculture, a major employer, grew by only 4 percent. He advocated for increased public investment in agro-processing, extension services, climate adaptation, and improved seed systems. This would transform agriculture and create more employment opportunities. The IEA also welcomed the reduction in the policy rate but highlighted the persistent high lending rates from commercial banks. This disparity hinders businesses from accessing affordable capital for expansion and job creation.
Madam Sophia Akuffo, a Distinguished Fellow at the IEA and chairperson of the review, echoed these sentiments. She noted that while Ghana has made progress in inflation, fiscal performance, interest rates, reserves, and public debt, stabilization is merely a starting point. Madam Akuffo stated, “The critical fiscal question then is how we translate every gain made with this stabilisation into sustainable economic growth, decent jobs with decent remuneration, productive investment and overall improved livelihoods for all Ghanaians.” This perspective underscores the urgency of the IEA's recommendations. The Fiscal Council also needs adequate technical capacity and operational independence to provide regular reports to Parliament and the public. This ensures transparency and accountability in fiscal governance. Ghana's ability to consolidate these gains into lasting economic transformation will define its next phase of development.