Sustain economic stability, expand productive employment and create better jobs – ISSER to government

ISSER’s central message is that economic stability matters only if it improves daily life. The institute wants the government to keep inflation low and public finances disciplined while supporting investment that expands productive employment. Growth should create reliable, quality jobs rather than remain a headline figure.

Young people are a particular priority. ISSER wants stronger links between economic expansion and employment opportunities, while also reducing the cost of borrowing. Better jobs can help households benefit directly from growth instead of facing uncertain work or limited income gains.

Ghana grew by 6.0% in 2025, but ISSER warns that growth remained uneven across sectors. The government should sustain stability, diversify production and exports, improve infrastructure, and reduce dependence on commodity-driven gains. These steps could make growth more inclusive and translate economic recovery into improved living standards.

Ghana’s economy expanded by 6.0% in 2025. This was faster than the 5.8% recorded in 2024, showing that the recovery gained momentum. Growth also exceeded the average pace internationally and across sub-Saharan Africa.

The comparison is striking: global growth was 3.4%, while sub-Saharan African growth was 4.5%. Ghana therefore grew 2.6 percentage points faster than the global average and 1.5 points faster than the regional average. These figures place Ghana’s performance above both benchmarks.

However, a strong national growth rate does not guarantee broad improvements in living standards. ISSER notes that employment, borrowing costs, and how growth benefits are distributed still matter. The next challenge is making the 6.0% expansion more inclusive, particularly by creating productive jobs and supporting investment.

Ghana’s 2025 growth was led by services and agriculture. Services expanded by 8.1%, while agriculture grew by 6.8%. Their performance helped lift the overall economy to 6.0%, although gains were uneven between sectors.

Industry grew just 2.3%. The main reason was a sharp contraction in oil and gas production, which weakened the sector’s total result. This slowdown did not affect every industrial activity: manufacturing and gold production still expanded.

The contrast shows why the composition of growth matters. Strong services and agriculture growth supported the economy, but weaker industry limited broader momentum. ISSER therefore wants Ghana to diversify production and exports, improve infrastructure, and reduce dependence on commodity-driven gains. A wider industrial base could make future growth more resilient and help create more productive employment.

Inflation is the rate at which prices generally rise over time. When inflation is high, money loses purchasing power, so households may struggle to afford goods and services. Businesses also face greater uncertainty about costs, prices, and planning.

Ghana’s year-end inflation fell sharply, from 23.8% to 5.4%. This means price pressures were much lower at the end of 2025 than at the end of the previous period. Alongside a stronger cedi, the decline provided relief to households and businesses, according to ISSER.

Lower inflation can make budgets easier to manage and improve confidence. It also creates a more favourable environment for investment when combined with lower interest rates, improved fiscal conditions, and stronger reserves. ISSER nevertheless says stability must be sustained, because lower inflation alone will not guarantee better jobs or fairly shared growth.

GDP measures the value of goods and services produced, but it does not show how widely the benefits are shared. A country can grow while many people see little change in their income, work opportunities, or ability to afford necessities. That is why employment and distribution matter alongside GDP.

For Ghana, ISSER identifies three concerns: employment opportunities, the cost of borrowing, and the distribution of growth benefits. If businesses cannot afford loans, they may invest less and hire fewer workers. If new income is concentrated, households outside growing sectors may gain little from expansion.

Ghana’s 6.0% growth in 2025 therefore does not automatically mean improved livelihoods. Services and agriculture grew strongly, but industry was weaker. The government must sustain stability while expanding productive employment, particularly for young people, so economic growth reaches more households.

Investment depends partly on stability and access to finance. A stronger currency can reduce pressure from imported costs, while lower interest rates can make loans more affordable. Fiscal discipline can improve confidence in public finances, and stronger international reserves can support external stability.

Together, these conditions may encourage businesses to invest in equipment, production, and expansion. More investment can increase demand for workers and support productive employment. The article reports that Ghana’s cedi strengthened, interest rates declined, the fiscal deficit narrowed, and reserves improved as gold exports boosted the external position.

ISSER says these developments create a more favourable environment for investment, but they are not enough by themselves. The government must sustain low inflation and fiscal discipline while improving infrastructure and supporting productive sectors. These measures can help turn macroeconomic recovery into job creation and improved living standards.

Commodity-led growth can deliver strong export earnings, but it may not spread evenly across the economy. Heavy reliance on a few commodities can also make production and exports vulnerable when one sector weakens. Diversification means developing more products, industries, and export sources.

Ghana’s 2025 experience shows the contrast. Strong gold exports improved the external position and international reserves, yet a sharp contraction in oil and gas production slowed industry to 2.3%. Manufacturing and gold production expanded, but the overall industrial result remained weak.

ISSER therefore wants Ghana to diversify production and exports, improve infrastructure, and reduce dependence on commodity-driven gains. A broader economic base could make growth more resilient when oil or other commodities weaken. It could also support more productive employment, helping economic expansion improve living standards rather than relying mainly on resource gains.