IPPI commends government for economic gains in its 120-day social contract 

The Institute of Public Policy Initiatives (IPPI) has lauded the President John Mahama-led government for what it describes as a “remarkable turnaround” of the country’s economy in just 120 days into its Social Contract with the people. 

This was contained in a statement issued by IPPI, signed by Dr Ahmed Saeed, its Executive Director, and copied to the Ghana News Agency in Tamale. 

The statement said the significant improvements in key macroeconomic indicators reflected prudent economic management, sound policy decisions, and a renewed focus on inclusive growth. 

It said the country’s economy was showing strong signs of recovery with real GDP growth projected to hit 4.8 per cent in 2025, while inflation had also dropped sharply to 15.2%, from a peak of over 40% in recent years, while the cedi had stabilised against major international currencies boosting business confidence and easing import and export pressures. 

It mentioned other areas of progress such as declining interest rates, a narrowed fiscal deficit of 5.2% of GDP, and a strengthening of the country’s foreign reserves, which now stood at over $6 billion. 

It said, “These indicators signal that the government is taking the right steps to stabilise the economy and lay the foundation for long-term development.” 

The statement commended the administration for its swift and decisive economic reforms. 

It further highlighted the endorsements Ghana had received from international institutions saying “The International Monetary Fund (IMF) has praised the government’s efforts in meeting key reform targets while global ratings agencies such as Moody’s and Fitch have upgraded the country’s outlook from negative to stable. The World Bank has also noted improvements in macroeconomic stability and social protection.” 

It emphasise the need to ensure that the gains made directly benefited ordinary citizens, especially the vulnerable, saying “The real success of any economic recovery lies in its impact on the daily lives of citizens, jobs, healthcare, infrastructure, and the cost of living. 

It urged the government to remain focused on five key areas including sustaining macroeconomic stability, accelerating pro-poor initiatives, enhancing productivity in key sectors, promoting inclusive governance, and strengthening institutions. 

It also encouraged the government to consolidate these early gains and continue a path of stability and inclusive growth in the years ahead. 

GNA