The Institute of Economic Affairs (IEA) has urged the Government to leverage recent macroeconomic gains to accelerate job creation, productivity, industrialisation and sustainable economic transformation.
The Institute said improvements in key economic indicators should translate into higher household incomes, increased productive investment and improved living standards for Ghanaians.
Professor Alexander Bilson Darku, Director of Research at the IEA, made the call in Accra on during the Institute’s assessment of the 2026 Mid-Year Budget Review.
He said the Government should move beyond stabilisation towards transformational budgeting, with greater focus on growth-enhancing infrastructure and initiatives such as the 24-hour economy, while maintaining fiscal discipline.
“Ghana’s stabilisation is done. Now is the time to turn macro stability into real economic transformation, jobs and resilience,” he said.
Prof. Darku said real Gross Domestic Product (GDP) growth reached 6.4 percent in the first quarter of 2026, exceeding the full-year target of 4.8 percent.
He said inflation had declined significantly from 23.8 percent in December 2024 to 5.4 percent in December 2025, before edging up to 5.7 percent in June 2026.
The IEA Director of Research said the fiscal position had also strengthened, with the primary balance recording a surplus of 0.9 percent of GDP by June 2026, compared with the full-year target of 1.95 percent.
He said gross international reserves had increased to the equivalent of five months of import cover, while the debt-to-GDP ratio had fallen from 61.8 percent in 2024 to 44.7 percent in 2025 and stood at 45 percent by June 2026.
Agriculture Must Drive More Jobs
Prof. Darku, however, expressed concern about the composition of economic growth, noting that the services sector expanded by 7.1 percent, compared with four per cent growth in agriculture, which remains a major source of employment.
He called for targeted interventions to move agriculture from predominantly subsistence production towards industrial-scale production.
Such measures, he said, should include increased public investment in agro-processing, agricultural extension services, climate adaptation and improved seed systems.
He also advocated employment-led growth, stressing that economic expansion should result in decent employment opportunities and higher household incomes.
Lower Lending Rates Needed
On monetary policy, Prof. Darku welcomed the reduction in the policy rate but expressed concern about the continued high lending rates charged by commercial banks.
He urged the Government to introduce measures to strengthen the transmission of lower policy rates to businesses and productive sectors through more affordable credit.
He also called for measures to strengthen exchange-rate stability without excessive dependence on gold exports.
These, he said, should include export diversification, import substitution, stronger foreign exchange regulation and increased Ghanaian ownership of productive assets.
Prof. Darku further recommended reforms to the natural resource regime to increase the State’s share of resource revenues while promoting local processing and value addition.
IEA Seeks Stronger Fiscal Oversight
On fiscal governance, he called for the Fiscal Council to be given adequate technical capacity, operational independence and access to relevant fiscal data.
He also advocated regular publication of the Council’s reports to Parliament, civil society organisations and the general public.
Prof. Darku said Ghana had demonstrated its ability to stabilise the economy and should now focus on preserving those gains through structural transformation.
“The question is no longer whether Ghana can stabilise its economy. We have. The question is whether we have the courage to consolidate those gains into lasting economic transformation,” he said.
Madam Sophia Akuffo, Distinguished Fellow at the IEA and chairperson of the review, said the assessment showed that Ghana had made progress towards macroeconomic stability, particularly in inflation, fiscal performance, interest rates, reserves and public debt.
She said economic stabilisation should be viewed as a beginning rather than an end, with the next challenge being to translate the gains into sustainable economic growth, decent jobs with decent remuneration, productive investment and improved livelihoods.
“The critical fiscal question then is how we translate every gain made with this stabilisation into sustainable economic growth, decent jobs with decent remuneration, productive investment and overall improved livelihoods for all Ghanaians,” she said.
Madam Akuffo said the assessment was intended to stimulate constructive questions, recommendations and public discussion on Ghana’s economic development.
