Ghana’s Economic Recovery ‘Only on Paper’ – Economist Warns of Disconnect with Citizens’ Realities

Despite improved macroeconomic indicators, Ghana’s economic recovery is not being felt by ordinary citizens, warns economist and University of Ghana Business School lecturer, Professor Patrick Asuming.

Speaking on PM Express Business Edition on JoyNews, Prof. Asuming cautioned against prematurely celebrating what appears to be economic progress, stating that most Ghanaians are still grappling with high living costs.

“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 explained that while inflation is easing and the Producer Price Index (PPI) has declined—from around 18% to 10%—this doesn’t equate to a drop in prices.

“Prices are still going up. The rate at which they increase may have slowed, but things aren’t getting cheaper,” he clarified.

Prof. Asuming acknowledged gains in the cedi, improved foreign reserves, and falling Treasury bill rates as positive signs of financial stability. However, he stressed that these have yet to ease the burden on households or stimulate the real economy.

“Yes, the cedi has strengthened, but production costs remain high, tariffs are rising, and wages haven’t adjusted accordingly,” he said. “This puts pressure on both consumers and businesses.”

He credited the government’s swift fiscal actions and favourable global commodity prices for the improved economic indicators. But he pointed out that the lived experiences of many Ghanaians tell a different story.

“GDP figures for the first quarter may have outperformed expectations, but five out of 20 sub-sectors actually shrank. Growth in a few dominant sectors pushed the overall numbers up, masking weaknesses elsewhere,” he explained.

Prof. Asuming cautioned that an overreliance on headline figures like inflation and GDP could create a false sense of progress.

“A dip in inflation doesn’t mean life is getting easier. The average Ghanaian isn’t yet seeing the benefits of this recovery,” he stressed.

He concluded by urging policymakers to focus on translating fiscal and financial improvements into tangible benefits for the population.

“Until the real economy—jobs, wages, cost of living—starts to reflect these gains, we’re only recovering on paper, not in people’s pockets.”