Ghana lacks enough buffers to withstand major global shocks - Economist

Economist Professor Godfred Bokpin has cautioned that Ghana’s current economic stability remains fragile, warning that the country lacks sufficient buffers to withstand a major external shock similar to the COVID-19 pandemic.

Responding to concerns about whether Ghana’s economy is resilient enough to absorb global shocks during the CEO’s Webinar Hub Series held on July 31, 2026, he said the government itself recognises the need to maintain fiscal discipline because the gains made so far are not yet firmly entrenched.

“We have seen some level of stability, but stability has not come to stay,” he said.

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Professor Bokpin argued that although the government had projected an expansionary fiscal approach for 2026, it has instead maintained a fiscal consolidation path because a sudden increase in spending could undermine recent gains.

According to him, the decision to keep spending pressures under control reflects the government’s acknowledgement that macroeconomic stability remains vulnerable.

“The government itself recognises that the stability that we have is very fragile, and therefore they cannot switch immediately to fiscal expansion and begin to spend,” he said.

He added that the 2026 Mid-Year Fiscal Policy Review showed limited changes because authorities remain committed to a two-year plan aimed at restoring and strengthening macroeconomic stability.

Professor Bokpin also pointed to recent inflation trends as evidence that economic stability requires continued caution.

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“If you look at the data, over the last three consecutive months, inflation has been going up. Inflation moved from about 3.7% to 5.3%,” he noted.

He explained that while Ghana has recorded improvements in areas such as debt sustainability and fiscal performance, the country must build stronger economic buffers to protect itself against future global shocks.

DR/MA