Gold price crash could reverse Ghana's stability - Professor Bokpin

Professor of Finance and economist at the University of Ghana, Godfred Bokpin, has raised concerns about Ghana’s gold-driven macroeconomic stability, warning that a sharp decline in global gold prices could reverse the country’s recent economic gains.

Speaking during a discussion on the reported losses under the Domestic Gold Purchase Programme (DGPP) on Joy FM on Monday, August 24, 2026, Professor Bokpin said Ghana had placed too much emphasis on the benefits of the global gold price boom while paying insufficient attention to the environmental destruction caused by irresponsible mining.

He warned that a 40 percent decline in gold prices could wipe out the country’s reported economic gains within six to eight months.

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“The stability we are talking about, the gains that we are talking about, are not durable,” he said.

Professor Bokpin further warned that the state remained highly exposed to fluctuations in global commodity prices, noting that commodity prices historically undergo significant corrections after periods of strong growth.

According to him, Ghana cannot claim to be better off if its economic gains come at the expense of the country’s long-term environmental sustainability.

“Any growth model that is heavily reliant on environmental destruction and primary commodities is never sustainable,” he said.

He urged policymakers to look beyond short-term macroeconomic indicators and ensure that the environmental and social costs of gold production are properly accounted for when assessing the country’s economic performance.

He also called for rigorous analysis and stress testing of Ghana’s gold-driven economic strategy to determine how the economy would fare in the event of a major decline in gold prices.

ANAS/MA

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