A Research Fellow at the Institute of Statistical, Social and Economic Research (ISSER), Prof Charles Ackah, has identified five key indicators that, in his view, highlight Ghana’s persistent economic challenges over the past 65 years.
Prof Ackah said successive governments, including those led by the New Patriotic Party (NPP) and National Democratic Congress (NDC), have been unable to address the country’s structural economic weaknesses.
He identified persistent inflation, dependence on primary commodity exports, underperforming agriculture, a weak manufacturing sector and slow industrialisation as the country’s major economic setbacks.
According to him, Ghana has consistently recorded high inflation despite efforts by the Bank of Ghana to maintain price stability.
“Whether it is the NPP or the NDC, over the last 65 years, it has been chronically established,” he said. “When you look at the data, the first one is inflation. We are among the economies with high inflation over 65 years despite all that the central bank has been doing. We are a high-inflation economy, and it is stubborn.”
Prof Ackah also argued that Ghana’s export structure has changed little over the decades, with the country continuing to rely heavily on primary commodities such as gold, timber, bauxite, manganese and crude oil.
He said this dependence exposes the economy to fluctuations in global commodity prices, making export earnings unpredictable.
On agriculture and manufacturing, the economist said the two sectors are closely linked, stressing that the poor performance of agriculture has undermined industrial growth.
According to him, agriculture provides both the raw materials and the purchasing power needed to sustain manufacturing, and weaknesses in the sector force manufacturers to import inputs at higher costs.
He explained that Ghana’s exchange rate challenges further reduce the competitiveness of local manufacturers, resulting in low factory utilisation and, in some cases, business closures.
“Manufacturing and agriculture are like husband and wife. Once agriculture fails, manufacturing cannot take off,” he said.
Prof Ackah added that slow industrialisation remains another major obstacle to Ghana’s long-term economic transformation, calling for policies that address the structural weaknesses of the economy rather than short-term interventions.