Economic analyst Kwasi Nyame Baafi has raised concerns over what he describes as inconsistencies in Ghana’s reported economic recovery, questioning the accuracy of key indicators often cited to demonstrate stabilisation.
Analysing the issue on Kessben Maakye show, Dr. Baafi noted that inflation, which peaked at about 54% during the post-COVID-19 period, declined to approximately 23% by the end of December 2024. He acknowledged that projections by the IMF in April 2024, suggested a further drop to about 8% by 2025, but argued that such figures must be carefully scrutinised.
According to him, claims that the government has met primary surplus targets without resorting to additional borrowing remain questionable. He stressed that rising debt levels contradict assertions of fiscal discipline, pointing out that Ghana still requires billions of dollars to achieve its economic targets.
Dr. Baafi also referenced data from the Bank of Ghana, indicating that key macroeconomic indicators show mixed results. While some figures suggest growth, he argued that the overall impact on the economy remains uncertain.
He further highlighted the Domestic Debt Exchange Programme (DDEP), stating that although it reduced the debt stock from about GH¢60.8 billion to GH¢9.4 billion, it imposed significant costs on bondholders. He contended that these losses undermine the narrative of a straightforward economic recovery.
When questioned about what accounted for the stabilization of the economy, he insisted that, there were existing policies initiated by the NPP running before the inception of this current government. He added that, fuel prices was on decline in January 2025, exchange rate was appreciating, meaning the recovery was in place. Nobody can claim he did some magic in 2025 to achieve economic stability and appreciation of the cedi, Baafi stated.
He questioned whether current improvements can be sustained.
He argued that the primary goal of economic management should be to ease the burden on citizens, yet many Ghanaians continue to face hardship. “Economic indicators are only meaningful if they translate into improved living conditions,” he noted.
Dr. Baafi concluded that while some macroeconomic indicators appear positive on the surface, underlying economic realities suggest that stability may not be as solid as presented.
