When Facts Fall, Trust Crumbles – IERPP’s Dr. Bannor takes on Finance Minister over Budget Claims

The Institute of Economic Research and Public Policy (IERPP) has taken aim at the Finance Minister’s 2025 Mid-Year Budget Review, citing misleading economic data, key omissions, and a lack of transparency that could erode public trust in the country’s fiscal leadership.

The institute has called out the Minister of Finance for data inconsistencies, lack of transparency, and neglect of key sectors such as services and oil & gas.

Touching on developments in the real and energy sectors during a press conference held at the Ghana International Press Centre on Wednesday, July 30, 2025, Dr. Frank Bannor, Lecturer at GIMPA and Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), challenged the government’s claims of economic progress, stating bluntly:

“When facts fall, trust crumbles. Accuracy isn’t optional in economic leadership. Misleading statistics raise serious questions about the credibility of Ghana’s fiscal management,” he said.

Non-Oil GDP Growth Claim Disputed

Dr. Bannor took particular issue with claims made by the Minister of Finance, Dr. Cassiel Ato Forson, in paragraphs 64 and 65 of the Mid-Year Budget Statement, where the Minister stated:

“Non-oil GDP growth picked up strongly, growing at 6.8% in the first quarter of 2025, the highest since 2018.”

But , Dr. Bannor explained that, according to data from the Ghana Statistical Service (GSS), this statement is factually incorrect.

“The provisional real GDP growth rate without oil and gas for Q3 2024 was 8%. That clearly contradicts the Minister’s claim. So the assertion that 6.8% is the highest since 2018 cannot be true,” Dr. Bannor asserted, referencing official figures.

He emphasized that such misrepresentation, intentional or not, distorts public understanding of the economy’s health and threatens the credibility of the government’s fiscal reporting.

Services Sector neglect

Dr. Bannor also lamented the neglect of the services sector in the mid-year review, despite its dominant role in Ghana’s GDP composition and employment generation. He cited paragraph 63 of the budget, where the Minister focused on the industrial sector’s 3.4% growth while failing to mention the performance of the services sector.

“This is deeply concerning. In Q4 of 2024, the services sector achieved the highest real GDP growth at 6.3%. This sector—covering trade, ICT, transport, education, health, real estate, and more—employs the majority of Ghana’s workforce,” Dr. Bannor explained.

He stressed that ignoring the sector in fiscal planning and public reporting is not just an oversight but a policy misstep that could have dire consequences for livelihoods and household incomes.

“A decline in services sector growth translates directly to job losses and worsening living conditions. This should be a frontline concern, not a footnote,” he said.