Godfred Bokpin calls for infrastructure investment to drive growth

Professor Godfred Alufar Bokpin has urged the government to shift its focus toward infrastructure investment to ensure that the benefits of macroeconomic stability reach ordinary Ghanaians. Speaking ahead of the 2027 Budget presentation, the economics professor warned that a continued reliance on aggressive spending cuts is cooling the economy and stifling consumer demand. While acknowledging that the government has successfully restored a level of fiscal discipline, Bokpin argued that austerity alone cannot drive the long-term growth required to improve living standards. The professor highlighted a disconnect between improving macroeconomic indicators, such as falling inflation and interest rates, and the daily struggles of citizens. He noted that while stabilization goals have largely been met under the current IMF-supported framework, the resulting reduction in government expenditure has left significant infrastructure gaps unresolved. According to Bokpin, these deficits, including long travel times and limited production capacity, diminish the relevance of lower inflation for the average household and business. Bokpin’s comments come as Finance Minister Dr. Cassiel Ato Forson prepares to present the 2027 Budget, which is expected to outline the New Economy agenda. This four-year program aims to transition Ghana from a phase of stabilization to one of economic transformation, with a target of at least 5% annual growth through 2030. The professor emphasized that the government must now balance its fiscal discipline with strategic investments in productive sectors, specifically through the Big Push infrastructure initiative. However, the proposed US$10 billion New Economy program has faced scrutiny from the Minority in Parliament, who have raised questions regarding its financing and the effectiveness of previous initiatives. Bokpin stressed that for the 2027 Budget to be successful, it must prioritize capital expenditure that expands the nation's production capacity rather than just maintaining fiscal restraint. He remains optimistic that a shift toward investment-led growth could finally translate macroeconomic gains into tangible improvements for the Ghanaian populace.