Debt, inflation improving, but Ghanaians still feel no relief – Kuagbedzi

Financial analyst Nelson Cudjoe Kuagbedzi says although Ghana’s macroeconomic indicators have improved significantly ahead of the 2026 Mid-Year Budget Review, the benefits are yet to be reflected in the daily lives of ordinary citizens.

Speaking on Channel One TV on Thursday, July 23, ahead of Finance Minister Dr. Cassiel Ato Forson’s presentation of the Mid-Year Budget Review, Kuagbedzi acknowledged the government’s progress in stabilising the economy but questioned whether the gains were translating into lower living costs.

He noted that Ghana has made considerable strides in managing its public debt, attributing the improvement to prudent debt management and the relative stability of the cedi.

“In terms of debt management strategy, I will say we’ve been able to manage our debt in a positive way. Because we have also managed our currency well, the external component of our debt in cedi terms, including translation losses, has also been managed effectively. That is one of the reasons our debt-to-GDP ratio remains below 50 percent, which is good for the government,” he said.

Kuagbedzi also pointed to improvements in the country’s monetary and external sectors, describing them as evidence of growing macroeconomic stability.

He observed that although Gross International Reserves have declined from about US$14 billion at the end of March to approximately US$12.9 billion, Ghana’s external sector remains resilient, with exports significantly exceeding imports.

“Our external sector is also doing very well,” he said, noting that total exports stand at about US$18 billion, compared to imports of roughly US$8 billion.

Despite the encouraging figures, Kuagbedzi argued that the government’s biggest challenge is ensuring that the macroeconomic gains are felt by households and businesses.

“Generally, I think the numbers are looking good. But the worry is whether or not these numbers are translating into daily lives,” he said.

He cited the persistent cost of food as an example of the disconnect between declining inflation and consumers’ experiences, noting that although inflation has dropped sharply from 23.8 percent to 5.3 percent, prices have not adjusted accordingly.

“When inflation was 23.8 percent, the waakye seller was giving us two ladles for GH¢5. Inflation is now at 5.3 percent, but you’re still getting the same quantity for the same price. The behavioural aspect of pricing is also a bit problematic,” he explained.

Kuagbedzi said this disconnect highlights the need for policies that not only improve headline economic indicators but also deliver tangible relief to households struggling with the high cost of living.