“Recovery on Paper, Not in Pockets” – Prof. Asuming Warns of Disconnect Between Ghana’s Economic Data and Daily Realities

Ghana’s recent macroeconomic gains may look impressive on paper, but they are not yet easing the burden on ordinary Ghanaians, according to economist and University of Ghana Business School lecturer, Professor Patrick Asuming.

Speaking on PM Express Business Edition on JoyNews channel, Prof. Asuming challenged the growing optimism surrounding Ghana’s economic recovery, warning that improvements in inflation, currency strength, and interest rates are not being felt in the everyday lives of citizens.

“It seems to me that the financial and monetary side of the economy has performed better, and the real side seems to be lagging,” Prof. Asuming said.

“There’s a disconnect between how people are perceiving the economy and what the macro numbers are telling us.”

■ “Prices Are Still Rising”

Although inflation has dropped and the Producer Price Index (PPI) declined from 18.5% in April to 10.2% in May, Prof. Asuming noted this does not imply that prices are falling.

“Prices are still rising. They haven’t declined. The rate of increase has reduced, but that’s not the same as things getting cheaper,” he explained.

He further argued that while the cedi has stabilised, and foreign reserves and Treasury bill rates show signs of financial health, businesses and households continue to face high input costs, stagnant wages, and rising tariffs.

■ Real Economy Not Matching Fiscal Stability

Prof. Asuming praised the government’s fiscal discipline and improved reserve position, crediting sound policy and favourable global export prices. However, he maintained that the “real economy” — the part that directly impacts citizens — is yet to rebound.

“When you dig deeper, it’s clear that the real economy, the part that touches people’s lives every day, isn’t recovering at the same pace.”

He cited Q1 2025 GDP data, noting that while headline growth exceeded expectations, five out of twenty economic sub-sectors actually declined.

“The ones that grew had more weight, so they pushed the overall number up. But that masks some real weaknesses,” he cautioned.

■ Don’t Let Headline Numbers Mislead

Prof. Asuming warned against mistaking improving headline indicators for broad-based recovery.

“We shouldn’t assume that a decline in inflation means prices are coming down or that the economy is booming just because the macro indicators look better.”

“People are still under pressure. The average Ghanaian isn’t yet feeling the recovery.”

■ A Call for Inclusive Economic Measures

He concluded by stressing the need for policies that ensure financial stability translates into improvements in living standards.

“Until the real side of the economy starts catching up, people will continue to feel that we are recovering on paper—but not in their pockets.”

Prof. Asuming’s remarks underscore growing concerns that while Ghana may be ticking the right boxes internationally, domestic economic well-being remains fragile.