Ghana’s Economic Outlook Under Pressure as Policy Concerns Mount – Economist Warns

Ghana’s economic trajectory is facing renewed scrutiny as concerns grow over weakening macroeconomic indicators, policy direction, and external shocks, according to economist Dr. Nyame Baafi.

In a zoom meeting on Kessben TV’s Digest,

Dr. Baafi noted that despite a World Bank projection of approximately 4.8% growth for Ghana, key microeconomic indicators have been declining since January 2025, raising questions about the sustainability of the country’s recovery.

He pointed to the government’s Goldbod initiative, suggesting that while it was intended to stabilize the economy, it may not deliver the expected long-term impact. “Alone, I don’t think it is sufficient,” he indicated, emphasizing the need for broader structural policies.

According to the economist, building a resilient economy requires deliberate policy measures that can withstand external shocks. He criticized the current policy focus on reducing import costs, warning that such measures may be inadvertently harming local industries, many of which are now struggling.

Dr. Baafi also highlighted the potential implications of escalating geopolitical tensions, particularly the ongoing conflict involving the United States, Israel, and Iran. He cautioned that such developments could drive global fuel prices higher, putting additional pressure on Ghana’s economy.

However, he stressed that Ghana should not rely solely on international agencies for guidance on managing these impacts. Instead, he urged policymakers to take proactive, locally driven decisions.

“The extent of the economic damage from global conflicts will largely depend on the policies we have in place to absorb these shocks,” he said.

To ease the burden on citizens, Dr. Baafi recommended that the government consider withdrawing some of the levies on fuel, which he believes could provide immediate relief.

He also expressed skepticism about the effectiveness of the Dumsor Levy in addressing the country’s energy sector debt. According to him, more comprehensive and innovative policies are needed to resolve the underlying challenges in the sector.

As Ghana navigates a complex economic landscape, analysts say the coming months will be critical in determining whether current policies can deliver stability or require urgent recalibration.