Accra: Ghana's recent economic gains, which reflect in improved growth and stability indicators, risk being undermined by widening inequality and persistent structural challenges, says Ms. Cindy Nortey, a Development Economist. Ms. Nortey, an Economic and Policy Research Fellow at the Policy Initiative for Economic Development (PIED Africa), commended the Government for the recent gains, noting risks amid high volatility in the global economy and domestic fiscal constraints.
According to Ghana News Agency, Ms. Nortey highlighted that between 2022 and 2024, Ghana endured inflation rates as high as 54.1% and 36% in 2023, which severely impacted Small and Medium-sized Enterprises (SMEs) and increased living costs. The consequences included costly credit for businesses and households, closures or job cuts due to high borrowing costs and strict collateral requirements, pushing many families down the wealth ladder. SMEs, which contribute about 70% of the Gross Domestic Product (GDP) and employ up to 85% of the workforce, were particularly hard hit. Women-owned businesses, accounting for 44% of MSMEs, were disproportionately affected, exacerbating gender inequality and deepening economic disparities.
Ms. Nortey observed improvements in macroeconomic indicators since 2025. She referenced the Ghana Statistical Service's report showing a 6% growth in 2025, up from 5.8% in 2024, and a reduction in inflation to 3.3% in February 2026, compared to 23.1% a year earlier, as positive recovery and stability indicators. The Cedi traded at GHS 10.68 to the dollar, the Monetary Policy Rate eased to 15.5%, and Ghana managed to pay US$1.17 billion in Eurobond debt by mid-2025, with projected external debt service of US$1.4 billion in 2026, marking a buoyant economy.
Ms. Nortey cautioned that the headline numbers did not necessarily translate into improved living standards for Ghanaians, urging actions to ensure the growth was felt beyond the figures. She questioned whether the improved economic indicators truly mirrored the quality of life for Ghanaians and addressed concerns about the inequality gap. She pointed out that while policies like the Free Senior High School (Free SHS) expanded access to education, health inequality remained stark as the National Health Insurance Scheme (NHIS) covered less than 2% of the poorest population.
Despite declining unemployment rates since 2022, Ms. Nortey explained that a fast-growing labor force, coupled with weak manufacturing and unattractive agricultural opportunities, had left many young Ghanaians jobless. Financial institutions' preference for short-term loans continued to constrain SMEs, with lack of collateral remaining a barrier, especially for women entrepreneurs. These bottlenecks directly affected household incomes and wealth creation. She warned that inequality threatened political, social, and economic stability, stressing its impact on access to health care, education, and overall quality of labor.
Ms. Nortey noted that with four years left to achieve the UN Sustainable Development Goals (SDGs), it was important for policymakers to ensure that Ghana's macroeconomic successes translated into tangible improvements in citizens' lives. She emphasized that while the current macroeconomic indicators are notable accomplishments, economic growth statistics must be felt beyond figures, and urged economic managers to take steps to drive the economy in a way that benefits all citizens.