Ghana's economy has shown significant growth, reaching GH₵1.4 trillion, with inflation dropping to 5.4%, according to the Ghana Statistical Service (GSS). However, opposition figures, including Dr. Mahamudu Bawumia and Kojo Oppong Nkrumah, have raised concerns about the lack of job creation, characterizing the growth as a "Paper Economy." They are questioning the effectiveness of the government's policies, particularly the new $10 billion "New Economy" plan.
The government's economic figures are impressive, with GDP growth at 6%, debt-to-GDP ratio dropping to 44.7%, and multidimensional poverty improving by three percentage points to 21.9%. However, the jobs crisis persists, with overall unemployment barely moving from 13.1% to 13.0% between the end of 2024 and the third quarter of 2025. Youth unemployment stands at 32.4%, with roughly one in three young jobseekers unable to find work.
The GSS has acknowledged that growth has not translated into decent employment for Ghanaians, particularly among young people and women. The statistical service has reported that nearly two million young Ghanaians are sitting idle, with women being the most affected. This has raised concerns about the government's ability to create jobs and improve living standards.
Despite low inflation, many households are still feeling the pinch, particularly with housing, water, and energy inflation at 10.3%. This is affecting rent, electricity, and water bills, which are hitting households harder than any other item in the average consumer's basket. The government's flagship job-creation effort, the 24-hour economy policy, is being questioned, with concerns about policy lags, under-execution, or structural weaknesses in the economy.
The New Economy plan, valued at $10 billion over five years, aims to address the jobs crisis. However, the funding for the plan is unclear, with President John Mahama stating that it will not come from external borrowing. The government's revenue has fallen short of target, and the plan's implementation will require significant funding, which may be challenging.
The opposition's concerns about job creation are being echoed by the public, with many Ghanaians expressing frustration about the lack of employment opportunities. The government's ability to convert macroeconomic stability into employment is being questioned, and the 2027 Budget will be closely watched to see if it addresses these concerns.
The World Bank is projecting further declines in gold prices, which could affect Ghana's economy, as gold accounts for 68% of the country's exports. The government's revenue shortfall and the need to service debt will make it challenging to implement the New Economy plan, which is due to launch in 2027.
Key points
- The government's economic growth has not translated into decent employment for Ghanaians.
- The New Economy plan aims to address the jobs crisis, but its funding is unclear.
- The opposition is questioning the government's ability to create jobs and improve living standards.
