Goodwill boosting economy, but real test yet to come – Kpemka
Former Deputy Attorney General, Joseph Kpemka, has warned that Ghana’s recent positive economic signals may not reflect the full picture—especially as the government begins major financial disbursements.
Appearing on Face to Face with Umaru Sanda Amadu on Channel One TV on Tuesday, July 29, Mr. Kpemka pointed to the common surge in goodwill that accompanies a change in government, which he says often boosts economic indicators temporarily.
“When there’s a change of government, that goodwill on the part of local and international communities is heightened. And it translates into affecting the economic indicators, and that is what we’re seeing,” he said.
But he cautioned that the stability could shift when the government starts fulfilling large payment obligations.
“When the government begins to roll out major policies and begin to make payments of monies that are significant in nature, you are going to come to a conclusion without hesitation that certain indicators will get distorted. There’s no doubt about it, because now we’re not paying contractors,” Kpemka added.
Ghana’s economy recorded a robust 5.3% growth in the first half of 2025, up from 4.9% during the same period in 2024 — the highest first-half performance since the COVID-19 pandemic struck in 2020.
Presenting the Mid-Year Budget Review in Parliament on Thursday, July 24, Finance Minister Dr. Cassiel Ato Forson credited the strong performance to a surge in agricultural productivity, despite lingering global economic uncertainties.
“Mr. Speaker, despite global economic uncertainties, Ghana’s economy demonstrated robust growth. In the first half of 2025, the economy expanded by 5.3%, up from 4.9% in the same period 2024, marking the highest first-quarter growth since 2020,” Dr. Forson told Parliament.
He highlighted the agriculture sector as the main engine of growth, recording a remarkable 6.6% expansion — nearly triple the growth rate posted in the first quarter of 2024. The sector alone accounted for 26.4% of the overall growth in Q1, with the fishing subsector leading the charge at 16.4%.
The performance comes amid the Mahama administration’s push to re-anchor the economy on production and value-chain development, particularly in agro-industrial sectors.
Source: channelonenewsonline