Development Economist and Associate Professor, Fred Dzanku, at the Institute of Statistical, Social and Economic Research (ISSER), University of Ghana, has commended recent improvements in Ghana’s economy but warned that sustaining these gains remains the critical challenge. Speaking on Joy Newsfile on February 28 closely followed by The High Street Journal, Dzanku said that while the 2026 State of the Nation Address painted an encouraging picture, medium-term sustainability is key.
In his address to Parliament, President John Dramani Mahama highlighted significant macroeconomic progress, including stabilisation in inflation, exchange rate predictability, renewed investment confidence, and steps to strengthen public finances. The President described these achievements as part of a broader “Reset Agenda” aimed at restoring macroeconomic stability, supporting economic growth, and improving living standards across the country.
Reflecting on the President’s address, Dzanku said: “A state of the nation address is normally a statement of ambition. Yes, a lot of numbers point to improvement, but the analytical question is whether what we are seeing is sustainable. Stabilisation cannot be measured over just one year.”
Dzanku noted the structural challenges that continue to affect the economy, including high interest payments, which historically consume about 36 percent of government revenue, far above the sub-Saharan average of 8 percent, and declining public investment, which has fallen from 27 percent of GDP in 2015 to just 10 percent in recent years. He warned that without addressing these structural issues, short-term progress could be easily reversed.
He also highlighted GDP per capita growth, which has averaged just 2.3 percent over the past decade, as a key metric for long-term economic transformation. “The real test is not whether stability has been achieved in one year, but whether the policy trajectory is credible and consistent over the medium term,” Dzanku said. “If we sustain this path, we can be optimistic, but history reminds us to adopt a cautious wait-and-see attitude.”
Background
The 2026 State of the Nation Address presented an ambitious roadmap for Ghana’s economy. President Mahama emphasised achievements in fiscal consolidation, monetary stability, investment promotion, and structural reforms across key sectors.
He highlighted renewed investor confidence, stabilised exchange rates, moderation in inflation, and steps to increase public sector efficiency, portraying a trajectory of economic recovery after years of fiscal challenges.
While the President’s address painted a hopeful picture of Ghana’s economic outlook, experts like Dzanku stress that sustainable growth depends on medium-term structural reforms, consistent policy implementation, and managing legacy fiscal pressures.
