Ghana needs long-term macroeconomic stability for transformation — Prof. Bopkin

Economist and professor of finance at the University of Ghana, Professor Godfred Bopkin, has emphasised the need for the country to maintain long-term macroeconomic stability to achieve sustainable economic transformation and inclusive growth.

He said short-term economic policies disrupt stability, stressing that low inflation and low interest rates must be sustained over an extended period for effective planning and growth.

“We should be interested in maintaining macroeconomic stability for the long term. You need low inflation for a long. You need low interest rates for a long. If inflation is not low for long, you cannot plan for long,” he said.

Prof. Bopkin was speaking at the  Ghana National Chamber of Commerce and Industry dialogue series which was held in Accra on Tuesday on the theme: “2025 National Budget Discourse: Implication for the Private Sector”.

Short-term stability

He stated that since 1992, the country had often achieved relative stability for short periods, typically two to three years before crises derailed the progress.

Prof. Bopkin stressed that macroeconomic stability should not be viewed as an achievement in itself but as a foundation for long-term economic transformation. 

Drawing comparisons with countries like Malaysia, Singapore and South Korea, he pointed out that their success was built on consistent policies implemented over at least 15 years.

He urged policymakers to take a long-term approach to economic management, ensuring stability beyond short election cycles so that the country could move beyond the preparatory stage and achieve meaningful economic progress.

Spending and efficiency 

The professor also addressed Ghana’s fiscal policy, noting that while the country had been able to generate and spend revenue relative to the size of its economy, the efficiency of spending remained a major challenge.

“Ghana has spent just like Malaysia, Singapore and South Korea. While these countries used their expenditure to create employment, quality infrastructure and economic growth, Ghana’s spending has resulted in inflation, poverty and environmental destruction,” he stated.

He emphasised the need for more efficient government spending, pointing out that in Ghana, infrastructure projects such as road construction often cost multiple times the global average due to inefficiencies and corruption.

He stressed that the country’s economic growth must be intentional, sustainable and people-centred. 

“It is not enough to talk about GDP growth. We must measure how many people are being lifted out of poverty, how income inequality is being reduced and how our growth strategy is preserving the environment,” he said.

Opportunities 

The Chief Executive Officer (CEO) of the GNCCI, Mark Badu-Aboagye, said businesses must identify opportunities in the 2025 budget and strategically position themselves to take advantage of them. 

He said a clear example was the government’s commitment to procuring locally manufactured goods, which presented a significant opportunity for businesses.
Another key opportunity, he said, lay in the infrastructural sector, where the government was expected to invest approximately GH¢1.5 billion. 

“I see a lot of potentials, and as a chamber, we are committed to providing businesses with the necessary information to position themselves effectively and benefit from the provisions in the budget,” he said.