Ghana’s recent economic gains, which reflects in improved growth and stability indicators, risk being undermined by widening inequality and persistent structural challenges, says, Ms Cindy Nortey, a Development Economist.

Ms Nortey, an Economic and Policy Research Fellow at the Policy Initiative for Economic Development (PIED Africa), commended the Government for the recent gains, noting risks amid high volatility in the global economy and domestic fiscal constraints.

She said between 2022 and 2024, Ghana endured inflation rates as high as 54.1 per cent, 36 per cent in 2023, hitting hard at Small and Medium-sized enterprises (SMEs) and pushing living costs high.

In an economic review paper copied to the Ghana News Agency, Ms Nortey said the consequences included costly credit for businesses and households, closures or job cuts due to high borrowing costs and strict collateral requirements, and pushing many families down the wealth ladder.

“SMEs, which contribute about 70 per cent of Gross Domestic Product (GDP) and employ up to 85 per cent of the workforce, were particularly hard hit. Women-owned businesses, which account for 44 per cent of MSMEs, were also disproportionately affected,” she stated.

The situation, the Development Economist said, also heightened the country’s gender inequality and deepened economic disparities.

Ms Nortey, however, observed improvements in macroeconomic indicators since 2025.

She referenced the Ghana Statistical Service report of a six per cent in 2025, up from 5.8 percent in 2024, a fall to 3.3 per cent in February 2026, compared to 23.1 per cent a year earlier, as positive recovery and stability indicators.

She said the Cedi trading at GHS 10.68 to the dollar, Monetary Policy Rate easing to 15.5 per cent and the payment of US$1.17 billion in Eurobond debt by mid-2025 and projected external debt service of US$1.4 billion in 2026, marked a buoyant economy.

Ms Nortey cautioned that the headline numbers did not necessarily translate into improved living standards for Ghanaians, urging actions to ensure the growth was felt beyond the figures.

“The economy of Ghana recorded relatively better indicators in the year 2025 as compared to the preceding three years, however, do these admirable statistics mirror the quality of life of Ghanaians?” She quizzed.

“…And is there a direct connection between the statistics and the reality of life with particular concern about the inequality gap?”

Providing instances of inequalities, she noted that while the Free Senior High School (Free SHS) policy expanded access to education, health inequality remained tark as the National Health Insurance Scheme (NHIS) covered less than two per cent of the poorest population.

She said unemployment persisted despite declining rates since 2022, explaining that a fast-growing labour force, coupled with weak manufacturing and unattractive agricultural opportunities, had left many young Ghanaians jobless.

“Financial institutions’ preference for short-term loans continues to constrain SMEs, while lack of collateral remains a barrier, especially for women entrepreneurs. These bottlenecks directly affect household incomes and wealth creation,” Ms Nortey argued.

She warned that inequality threatened political, social, and economic stability, saying: “The inequality gap is crucial because it affects access to health care, education, and the overall quality of labour.”

Ms Nortey noted that with four years left to achieve the UN Sustainable Development Goals (SDGs), it was important for policymakers to ensure that Ghana’s macroeconomic successes translated into tangible improvements in citizens’ lives.

“Although the current macroeconomic indicators of the Ghanaian economy are notable accomplishments, the statistics of economic growth must be felt beyond figures and trust that the managers of the economy will take steps to drive the economy in this regard,” she said.