Dr. Said Boakye, Senior Research Fellow at the Institute of Fiscal Studies (IFS), has cautioned that the Ghanaian economy remains fragile despite reported growth rates. He urged the government to avoid implementing economic policies during the election year that could undermine efforts to revitalize the economy.
“This requires it to choose prudence over populism even as it campaigns for power in this year’s elections. Thus, politicization of economic policy decisions and choices must stop,” Dr. Boakye said.
During a press briefing, he noted that key macroeconomic indicators are still underperforming compared to recent historical trends. He advised the government to recognize the economy’s fragile state and allow it to guide policy decisions.
Dr. Boakye noted that the fiscal improvements recorded since 2023 are temporary and largely due to reduced debt service expenditures following domestic and international debt restructuring programs. He urged the government to use this opportunity to address weak fiscal fundamentals, such as low revenue collection, excessive fiscal rigidities, corruption, and politically motivated spending decisions.
“The government should not, therefore, behave as if all is well. Rather, the fragile state of the economy should be made to inform its policy choices,” he added.
The IFS also questioned the government’s ability to meet the mid-year revenue target of GH¢177.2 billion, expressing concerns about the increased reliance on domestic financing due to the country’s limited access to the Eurobond market.
