Economist Professor Godfred Alufar Bokpin has urged the Ghanaian government to achieve an annual inflation rate of six percent for at least 15 years to ensure meaningful improvements in the lives of citizens.
In an interview with the Ghana News Agency, Prof. Bokpin emphasized the need for stable currency, high productivity, and lower interest rates to translate macroeconomic gains into tangible benefits for ordinary Ghanaians.
“We've made some macro-level progress, but it's yet to translate into the micro, which takes time to benefit ordinary Ghanaians,” Prof. Bokpin stated.
“Before macro-level development benefits the Ghanaian on the street, we're looking at achieving an inflation rate of not more than six percent for not less than 15 years.”
The economist highlighted the short-lived nature of previous measures to control inflation and stressed the importance of sustained efforts for meaningful impact.
“Our target should be an inflation rate of not less than six percent in 15 years, then we'll see how interest rates come down significantly and ease restrictions on growth drivers of the economy,” he explained.
Prof. Bokpin acknowledged the enduring nature of Ghana's economy in 2023, describing it as a result of the country going through a “surgical operation with the International Monetary Fund (IMF).”
He pointed out sacrifices made by Ghanaians, including higher taxes and the introduction of levies like the COVID-19 levy and Electronic Transactions Levy (E-levy).
“Companies have had to lay off workers because things are hard, but the government is keeping its size,” he noted. Despite the challenges, he mentioned positive signs of stability, citing a reduction in the inflation rate from 53.6 percent in January 2023 to 26.4 percent in November 2023.
Looking ahead to 2024, Prof. Bokpin expressed optimism about economic growth, particularly in the hospitality sector, due to election-related activities. “This would inject more liquidity into the economy and bring some relief to Ghanaians,” he concluded.