The Economy Has Turned Around, But Prices Will Not Fall Overnight: Exposing the Political Mischief

Let us speak plainly, because this matter has been deliberately twisted for political gain.

Ghana has gone through one of the most difficult economic periods in recent memory. Inflation rose painfully. The cedi suffered badly. Prices of goods and services climbed to levels that punished ordinary households. Businesses struggled, salaries lost value, transport fares increased, and many families were forced to adjust their lives downward.

That hardship was real. Nobody should pretend otherwise.

But it is equally important to tell the truth about where Ghana is today. The country has made a serious economic turnaround. Inflation has come down significantly. The cedi has found greater stability. Confidence is returning. Public finances are improving. Most importantly, Ghana has reached the final stage of the IMF-supported programme, with the IMF and Ghana announcing a staff-level agreement on the sixth and final review. That marks the conclusion of the bailout arrangement, although formal IMF Executive Board approval is still the final procedural step.

This did not happen by magic. It happened because difficult decisions were taken, fiscal discipline was restored, reforms were pursued, and the government stayed the course.

Now, because the opposition knows these gains are real, they have changed their argument. They no longer say the economy has not stabilised. Instead, they go to the ordinary person in the market, in the taxi rank, in the trotro, in the shop, and ask a clever but mischievous question:

“If the economy has improved, why are prices still high?”

That question sounds sensible on the surface. But when it is used without explanation, it becomes propaganda.

The simple truth is this: when inflation falls, it does not mean prices automatically fall back to where they were before. It means prices are no longer rising as fast as before. If a bag of rice moved from GHS 300 to GHS 600 during the crisis, lower inflation does not mean it will suddenly return to GHS 300. It means the speed at which prices are increasing has slowed down.

That is the difference between lower inflation and lower prices.

The opposition knows this. Their economists know this. Their former ministers know this. Their communicators may pretend not to know, but they know. Yet they deliberately confuse the ordinary citizen because confusion is politically profitable.

The same people who helped drive the economy into the ditch are now standing by the roadside asking why the car has not become brand new simply because it has been pulled out of the gutter.

That is the mischief.
The crisis Ghana suffered did not begin yesterday. It was caused by years of reckless borrowing, poor fiscal discipline, excessive spending, weak debt management, and delayed corrective action. Even when it became obvious that Ghana needed an IMF programme, the decision was delayed because of political calculation. Nobody wanted to admit the economy had reached that dangerous point. That delay made the pain worse.

By the time Ghana finally entered the IMF programme in 2023, the damage had already been done. Ghana was facing high inflation, rising debt pressure, a weakened currency, and loss of access to international capital markets. The IMF programme was designed to restore stability through fiscal consolidation, debt restructuring, and structural reforms.

So let us be honest with the ordinary Ghanaian. The government has not claimed that every Ghanaian is now comfortable. It has not claimed that prices have returned to pre-crisis levels. It has not claimed that unemployment has disappeared. What the government is saying is that the bleeding has been stopped.

And that matters.
When a sick person is rushed to the hospital, the first job of the doctor is not to make the person run a marathon. The first job is to stop the bleeding, stabilise the heartbeat, restore breathing, and keep the patient alive. Only after that can recovery, strength, and full movement begin.

That is where Ghana is.
The economy was bleeding. The cedi was bleeding. Inflation was bleeding. Investor confidence was bleeding. Public finances were bleeding. Now, the bleeding has been controlled. That is not the end of the journey, but it is a major achievement.

Prices remain high because the damage done during the crisis created a new cost structure. Importers bought goods at high exchange rates. Traders borrowed at high interest rates. Transport operators bought spare parts, tyres, lubricants, and vehicles at inflated prices. Businesses lost capital. Landlords increased rent. Utility costs rose. Wages lost value.

These things do not reverse overnight.
A trader who nearly collapsed during the crisis will not immediately reduce prices simply because the cedi has stabilised for some months. A transport operator will not quickly reduce fares when vehicle parts, insurance, maintenance, and daily living costs remain high. A business owner will not begin massive employment immediately when they are still recovering from losses and waiting to see whether the stability will last.

This is why economic recovery first appears in the national figures before it appears in the pockets of ordinary people.

That is not deception. That is how economies recover.

The real question should not be whether the gains are real. The real question should be whether these gains will be protected and converted into jobs, better wages, lower production costs, stronger local industry, and improved living standards.

That is where citizens must hold the government accountable.

But it is dishonest for the opposition to pretend that Ghana can move from economic crisis to instant comfort in one jump. It is even more dishonest when those asking the question are the same people whose mismanagement helped create the hardship in the first place.

Ghanaians must not be deceived. The fact that prices are still high does not mean the recovery is fake. It means the wound was deep. The fact that unemployment has not disappeared does not mean the economy has not improved. It means job creation is usually one of the last benefits of recovery to reach the ordinary person.

Stabilisation comes first. Confidence follows. Investment follows. Expansion follows. Jobs follow. Then living standards begin to improve.

That is the road.
Ghana has exited the danger zone, but it has not yet reached the promised land. The government must therefore remain disciplined. It must not become arrogant. It must not return to reckless borrowing. It must not waste the gains. It must be honest with the people and explain the challenges clearly.

But the opposition must also stop insulting the intelligence of ordinary Ghanaians.

You cannot set the house on fire, delay calling the fire service, watch the family lose property, and then mock the person rebuilding the house because the new furniture has not yet arrived.

Ghana’s recovery is real. The hardship is also real. Both can be true at the same time.

The task now is to protect the recovery and make it reach the kitchen table of the ordinary Ghanaian. That is the next battle. And that battle requires truth, patience, discipline, and serious leadership — not political mischief disguised as concern for the suffering masses.

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