Despite recent signs of macroeconomic recovery, the majority of Ghanaians are yet to feel any real improvement in their daily lives. That’s the concern raised by Professor Patrick Asuming, a respected economist and lecturer at the University of Ghana Business School.
Speaking on the PM Express Business Edition on JoyNews, Prof. Asuming cautioned against celebrating Ghana’s recent fiscal gains too quickly. He argued that while key economic indicators appear promising, there is a widening gap between those statistics and the financial realities of ordinary citizens.
“The financial and monetary side of the economy has shown some improvement, but the real sector—where people feel the economy day to day—is lagging behind,” Prof. Asuming said.
The Disconnect Between Data and Daily Life
According to the economist, although inflation is declining and the Producer Price Index (PPI) has dropped from approximately 18% to 10%, this doesn’t translate into lower prices for consumers.
“Prices are still rising. The rate at which they’re increasing has slowed, but that’s not the same as costs going down,” he clarified.
Prof. Asuming also cited recent gains in the Ghanaian cedi, better foreign reserve positions, and reduced Treasury bill rates as indicators of fiscal stabilization. However, he emphasized that these improvements don’t automatically translate into relief for Ghanaian households or small businesses.
“The cedi may have gained value, but other inputs like utility tariffs are going up, wages remain stagnant, and domestic production costs continue to rise,” he added.
Macroeconomic Strength Doesn’t Equal Household Relief
Ghana’s fiscal outlook has improved in part due to quick policy interventions and a favorable global commodity market. Exports like gold and cocoa have seen positive pricing trends, which helped strengthen reserves.
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“Government has done a decent job on the fiscal side,” Prof. Asuming admitted. “But when you dig into the GDP** data for Q1 2025, five out of the 20 economic sub-sectors actually saw contraction. The few strong sectors carried the weight, which can be misleading.”
He cautioned against interpreting headline macroeconomic growth as an overall recovery.
“Declining inflation or positive GDP growth doesn’t automatically mean people are better off,” he explained. “We shouldn’t fall into the trap of seeing better numbers and assuming all is well.”
Time to Focus on the Real Economy
For the average Ghanaian, the rising cost of food, transportation, and rent means economic hardship persists, even if the central bank’s indicators show progress. Prof. Asuming insists that unless the real economy—the sector directly impacting citizens—improves, the sense of recovery will remain superficial.
“We’re recovering on paper, but not in people’s pockets,” he concluded. “It’s time we focused not just on stabilizing the books, but on creating real, tangible change for Ghanaian households.”
source: myjoyonline
