Ghana’s recent economic gains reflected in improved growth and stability indicators risk being undermined by widening inequality and persistent structural challenges, Ms Cindy Nortey, a Development Economist, has warned.
Ms Nortey, an Economic and Policy Research Fellow at the Policy Initiative for Economic Development (PIED Africa), commended the Government for the progress made so far but cautioned that the gains remained fragile amid global economic volatility and domestic fiscal pressures.
She said Ghana experienced extremely high inflation between 2022 and 2024, peaking at 54.1 percent and remaining around 36 percent in 2023.
The situation, she explained, placed enormous pressure on small businesses and households and pushed the cost of living to very high levels.
In an economic review paper, Ms Nortey noted that the period of high inflation led to expensive credit for businesses and households, closures of some small firms, job cuts, and stricter borrowing conditions that pushed many families into financial hardship.
She said small and medium-sized enterprises (SMEs), which contribute about 70 percent of Ghana’s Gross Domestic Product and employ up to 85 percent of the workforce, were among the hardest hit.
Women-owned businesses, which account for about 44 percent of micro, small and medium enterprises, were also disproportionately affected.
According to the Development Economist, the situation further deepened gender inequality and widened the gap between different income groups in the country.
Ms Nortey, however, acknowledged improvements in key macroeconomic indicators since 2025.
She cited the country’s growth performance in 2025, which improved to about six per cent compared to 5.8 percent in 2024, as well as a sharp decline in inflation to 3.3 percent in February 2026 from 23.1 percent in the same period last year.
She also pointed to the relative stability of the cedi, the easing of the Monetary Policy Rate to 15.5 percent, and the payment of more than one billion dollars in Eurobond debt by mid-2025 as signs that the economy was recovering and becoming more stable.
Despite these positive indicators, Ms Nortey cautioned that the headline figures did not necessarily reflect improvements in the living standards of many Ghanaians.
“The economy recorded relatively better indicators in 2025 compared to the previous three years, but the key question is whether these figures truly reflect the quality of life of the ordinary Ghanaian,” she said.
She questioned whether there was a clear link between the improving statistics and the daily economic realities of citizens, particularly in relation to the growing inequality gap.
Providing examples, Ms Nortey noted that while the Free Senior High School policy had expanded access to education, inequality in the health sector remained significant, with the National Health Insurance Scheme covering only a small proportion of the poorest people in the country.
She also said unemployment remained a major concern despite some improvements since 2022. A rapidly growing labour force, weak performance in the manufacturing sector, and limited opportunities in agriculture had left many young people struggling to find jobs.
Ms Nortey added that financial institutions continued to prefer short-term lending, making it difficult for SMEs to access long-term financing.
She noted that lack of collateral remained a major barrier, especially for women entrepreneurs, and this continued to affect household incomes and wealth creation.
She warned that rising inequality posed a threat to political, social, and economic stability, as it affected access to healthcare, education, and employment opportunities.
Ms Nortey said with only four years left to achieve the United Nations Sustainable Development Goals, it was important for policymakers to ensure that Ghana’s macroeconomic progress translated into real improvements in the lives of citizens.
She expressed hope that the managers of the economy would take steps to ensure that the benefits of growth were felt across all segments of society rather than only reflected in national statistics.
