They’ve used the 2025 budget to correct imbalances – Prof. Bokpin explains cedi gains

Professor Godfred Bokpin, a lecturer at the University of Ghana Business School, discussed the cedi's recent appreciation. He linked this to necessary economic reforms and fiscal discipline by the government.

On May 24, he spoke on TV3’s show, The KeyPoints. Prof. Bokpin attributed the cedi's rebound to strong leadership and effective policy decisions in the 2025 budget. He noted that these changes are painful but essential.

He identified two key policies driving the cedi’s recovery: fiscal backing and corrective measures. Prof. Bokpin highlighted that excessive liquidity had been injected into the economy over three years.

He criticized past government spending decisions since COVID-19. Many had called for reduced spending and gradual fiscal consolidation, but those calls were ignored.

Prof. Bokpin also criticized the Bank of Ghana for worsening inflationary conditions in 2022. He stated that their actions pushed over 800,000 people into poverty.

He pointed out that Ghana struggled to meet key IMF targets in 2024, except for GDP growth and international reserves. The country missed its target for a primary surplus of 0.5% of GDP, ending up with a negative balance exceeding 3%.

According to Prof. Bokpin, the 2025 budget aims to correct past fiscal imbalances. It seeks to restore the IMF program by achieving a positive primary balance of 1.5% of GDP.