Ghana’s improving macroeconomic indicators must now translate into tangible benefits for businesses and households through deliberate policies that promote investment, productivity and inclusive growth, leading economists, bankers and private sector representatives have urged.

The consensus emerged at Channel One TV’s Quarterly Economic Outlook, held under the theme “A Mid-Year Review of the Ghanaian Economy: Measuring Progress, Identifying Risks and Charting the Way Forward.”

Participants agreed that while the country had made notable progress in stabilising the economy, sustaining the recovery would require targeted interventions to support businesses, deepen investment, strengthen the capital market and cushion firms against external shocks.

The forum brought together economists, bankers, policymakers and private sector leaders to assess Ghana’s economic performance, identify emerging risks and discuss priorities for maintaining growth and improving living standards.

Macro stability must drive inclusive growth

An Economist at the University of Ghana Business School (UGBS), Prof. Agyapomaa Gyeke-Dako, said Ghana’s economic management should now move beyond macroeconomic stabilisation to ensuring that the gains are reflected in the daily lives of businesses and households.

She noted that although Ghana had recorded significant improvements across key economic indicators, including lower inflation, reduced interest rates, a stable cedi and stronger international reserves, the recovery remained fragile and required policies that would stimulate productive sectors of the economy.

“We need measures to sustain the gains we have made and think about sectors that will promote growth. We need to be very intentional so that the macro-correction will translate into microeconomic distribution,” she said.

According to her, the benefits of macroeconomic stability usually take time to filter through to businesses and consumers.

“The micro-level impact will take time before people fully experience it. There is stability now, but if we channel the right measures into the right sectors, the benefits we expect will gradually be realised,” she added.

Prof. Gyeke-Dako urged government to prioritise sectors capable of expanding productive capacity, attracting investment and creating sustainable jobs to ensure that the ongoing recovery evolves into broad-based economic prosperity.

Inflation increase driven by temporary external factors

Touching on inflation, Prof. Gyeke-Dako dismissed concerns over Ghana’s June inflation rate of 5.3 per cent, describing the increase as largely temporary and driven by external developments rather than domestic economic weaknesses.

She explained that rising global crude oil prices, triggered by geopolitical tensions in the Middle East, had increased fuel costs, which in turn were feeding into transport fares and food prices.

“We are seeing an inflation rate, I think for June, at about 5.3%. I don’t think that there’s a need to worry so much about the 5.3%,” she said.

According to her, underlying inflationary pressures remain relatively subdued.

She explained that core inflation, which excludes volatile food and energy prices, presents a more accurate picture of underlying price movements.

“When you take them out, you see that even though headline inflation, which contains everything in the basket, has inched up, we are seeing core inflation being subdued,” she stated.

She therefore urged policymakers and businesses to focus on the underlying drivers of inflation rather than the headline figure alone.

Manufacturers urged to tap capital market

The Head of Trading, Global Markets at Absa Bank Ghana Limited, Andrews Akoto, called on businesses, particularly manufacturers, to rely more on Ghana’s capital market instead of conventional bank loans to finance long-term expansion.

According to him, traditional bank financing is often unsuitable for projects such as factory construction and major business expansion because such investments require patient, long-term capital.

“The kind of capital that these businesses need is long-term capital, and traditional bank loans are not fit for purpose for that kind of expansion,” he said.

Mr Akoto said Ghana’s capital market had demonstrated resilience despite the country’s recent economic crisis and debt restructuring programme.

He noted that several companies successfully raised funds through the debt capital market during the crisis, with some borrowing at rates lower than government securities.

“During the heat of the crisis in 2022 and the restructuring in 2023, you would think that investor capital would not invest. But there were businesses in Ghana that were able to raise capital in the debt capital market through bonds at cheaper rates than the government levels,” he said.

He, however, advised companies seeking capital market financing to strengthen their corporate governance systems and prepare for greater transparency and public scrutiny.

GUTA raises concern over freight costs

The President of the Ghana Union of Traders’ Association (GUTA), Clement Boateng, warned that rising freight charges were placing additional pressure on importers and could undermine some of the gains from Ghana’s improving macroeconomic environment.

He attributed the increase in shipping costs to disruptions in global trade routes arising from tensions in the Middle East, which have forced shipping companies to reroute vessels.

Mr Boateng disclosed that some importers had experienced prolonged delays in receiving their goods.

“I have had my goods locked up in the UAE since March. It was just three weeks ago that they had to make an arrangement to reroute the container, because if they say they are not doing that, the goods will be there, and I will also be sitting down here suffering,” he said.

He explained that freight charges, exchange rates and insurance costs collectively determine the final prices of imported goods and should therefore be considered together when assessing business costs.

According to him, businesses cannot isolate any single factor as solely responsible for rising prices, as the combined effect of these variables ultimately determines the cost borne by consumers.