Development economist Dr. Hayford Mensah Ayerakwa has highlighted a growing disparity between Ghana’s positive economic indicators and the financial realities facing everyday citizens.
In an interview with Kwamina Sam Biney on Bryt Adekye Mu Nsem on Bryt FM on Thursday, January 22, 2026, Dr. Ayerakwa made this assertion.
Dr. Ayerakwa emphasized that national level growth does not automatically translate into improved living standards for citizens.
“While key indicators such as GDP growth, inflation, employment rates, and interest rates show that the economy is expanding, many Ghanaians continue to experience financial strain. If we say the country is growing, it’s just the first step. Growth is different from development, and its development that translates into better lives for citizens,” he explained.
Despite the economy not surpassing 2024’s growth levels, there are encouraging signs: inflation has fallen from 23% to 5%, and the rapid rise in commodity prices has slowed. Yet, many Ghanaians still feel the effects of high costs, a situation Dr. Ayerakwa attributes in part to global crises such as COVID-19 and the Russia Ukraine war. Ukraine, a major supplier of grains and oil, was unable to export during the conflict, pushing global commodity prices higher. Combined with Ghana’s post-COVID recovery and ongoing supply chain challenges, these factors placed significant pressure on citizens.
To reduce future economic shocks, Ghana launched the Gold-for-Reserve programme between May 2023 and December 2024. The initiative increased the country’s reserves from 8.7 tons to 30.54 tons, aiming to provide a buffer against financial hardship. However, expectations that reserves would exceed 100 tons were not met. Most of the gold was sold, generating over $13 billion, with more than $10 billion distributed globally by the Bank of Ghana.
Cedi appreciation has also helped lower the dollar cost of imports, easing prices in stores. Yet, many Ghanaians particularly in rural areas still depend on locally grown food. Imported goods are often cheaper, discouraging the purchase of local produce. Analysts stated that this trend can hinder business growth, job creation, and tax revenue.
“That’s the irony of it,” Dr. Ayerakwa noted. “Cedi appreciation benefits some of us through lower import costs, but in other ways, it negatively impacts local businesses and rural communities.” He added.
Source:Mybrytfmonline.com/Tamara Owusu Ansah
