Accra: When the Minority Leader, Alexander Kwamena Afenyo-Markin, declared that 'we do not eat macroeconomics,' the statement might have garnered applause but lacks serious economic scrutiny. Ghanaians may not literally consume macroeconomic theory, but each meal on the table is influenced by it.
According to Ghana Web, the prices of staple foods like kenkey and rice, the cost of cooking oil, and transportation expenses are all impacted by inflation, exchange rates, interest rates, and fiscal discipline. Macroeconomics forms the invisible foundation beneath every household budget and every plate of food. The effects are tangible as inflation, currency depreciation, high interest rates, and debt crises are felt by the population.
During the debilitating and painful 2022-2023 period, Ghanaians experienced daily increases in the prices of food, fuel, transport, cement, medicine, and basic household goods. Traders repriced goods almost weekly, families struggled to plan, and businesses found it difficult to forecast. This period of instability was not theoretical; it was a lived reality. Inflation hit 54% in 2022, leading to rapidly increasing food prices, surging rent and utility costs, and eroding purchasing power.
Today, inflation has dramatically decreased from 23.8% in 2024 to 5.4%, and further to 3.8% by January 2026. This decline signifies price stability, allowing households to plan, traders to restock with confidence, and wages to retain their value. This is not just theoretical; it represents stability at the market and the pharmacy.
At the end of 2024, the 91-day Treasury bill rate was at 27.7%, but it has now fallen to 6.4%. Previously, when the government borrowed at nearly 30%, it absorbed most of the available liquidity in the banking system, leaving private companies struggling to access credit. Lower Treasury rates mean the government is no longer aggressively competing with businesses for funds, reducing borrowing costs, improving fiscal credibility, and creating more room for private sector lending.
Public debt has decreased from 61.8% of GDP in 2024 to 45.3%. The Domestic Debt Exchange Programme strained financial institutions and unsettled investors, but reducing the debt burden now means lower future interest payments and improved sovereign risk perception. In 2022-2023, currency instability exacerbated inflation and hardship, but today, the cedi has appreciated significantly against major trading currencies. A stronger currency lowers import costs, stabilises transport fares, and improves business confidence.
Gross international reserves have increased from US$8.9 billion to US$13.8 billion, equivalent to 5.7 months of import cover. These reserves act as economic insurance, allowing the country to absorb shocks. The strategy to build reserves to 15 months of import cover is a deliberate measure against future instability. A US$9.1 billion current account surplus reflects stronger external earnings and improved balance of payments fundamentals, strengthening the currency and stabilizing the economy.
To reduce this progress to the slogan 'we do not eat macroeconomics' trivialises the structural reforms that restore stability. It overlooks the fact that macroeconomic collapse leads to hardship, while macroeconomic stability brings relief. Ghanaians remember the challenges of 2022 and 2023, and they acknowledge that while macroeconomics may not be eaten like GOBE, its stability allows families to regain the dignity of planning, producing, and eating in peace.