The 2025 Mid-Year Budget Review may paint a picture of recovery, but leading economist Professor Charles Godfred Ackah says the real story lies beneath the glossy fiscal indicators: Ghana’s economic gains are fragile and externally driven.
While Finance Minister Mohammed Amin Adam touted declining inflation, a primary surplus, and relative currency stability during the presentation to Parliament, Prof. Ackah argues these improvements owe more to global market trends than to deliberate domestic reform.
“Gold prices are up, cocoa is doing well, and oil prices have stabilised,” the University of Ghana Professor of Finance and Economics told journalists. “We’re seeing an external advantage—not because of bold internal policy.”
According to him, attributing current macroeconomic stability solely to the government’s efforts masks a deeper problem: the economy’s persistent vulnerability to global commodity shocks.
“We’ve been here before,” Prof. Ackah cautioned, referencing the Mahama administration’s budget surpluses in the mid-2010s, which were similarly undone when commodity prices took a turn.
While acknowledging that some macroeconomic indicators have improved, he questioned the broader relevance of those numbers for ordinary Ghanaians.
“If the goal is just to showcase good statistics, then yes—congratulations are in order,” he said. “But if the goal is to reduce poverty, create jobs, and build a resilient and inclusive economy, then this mid-year review doesn’t inspire confidence.”
He criticized the budget’s lack of a clear vision to tackle structural issues like job creation, poverty, and inequality, suggesting it offers little hope to struggling families and unemployed youth.
“We must ask: What are we building? Who is benefiting from this consolidation? The fundamentals may be improving, but the people are not feeling it.”
Prof. Ackah warned that unless policymakers use current external windfalls to implement transformative domestic reforms, Ghana could face another cycle of crisis when commodity prices shift.
“The real test of competence is in insulating the economy from such shocks,” he said. “Until then, any celebration is premature.”
As Parliament continues to debate the implications of the mid-year budget, the economist’s remarks serve as a sobering reminder that statistical improvements alone are not a measure of national progress.
