Ghana’s Economic Growth in Recent Times Has Been Jobless, Says Prof. Patrick Asuming
Economist with the University of Ghana Business School, Professor Patrick Asuming, has asserted that Ghana’s economic growth in recent times has not been accompanied by substantial job creation.
Speaking during the NorvanReports and Economic Governance Platform (EGP) X Space Discussion on the topic, “Fiscal Vs Monetary Tug-of-War: Economic Salvation or Damnation?” on Sunday, Prof. Asuming highlighted the implications of monetary and fiscal policies on business expansion and employment.
“I think ordinarily you expect that when the central bank raises the policy rate, usually you are trying to reduce the extent of borrowing. So it means that businesses who need funds to expand their production find it more difficult to borrow to finance their activities. On that count, production and employment might probably reduce,” he noted.
However, he pointed out that the Finance Ministry’s reduction in borrowing from the market could make more funds available for businesses. “If the policy rate had remained the same, businesses would have had more access to credit to expand economic activity,” he added.
Despite these policy shifts, Prof. Asuming questioned the impact on job creation, emphasizing that Ghana’s recent growth has been concentrated in capital-intensive sectors such as oil, gas, and mining. “In particular, if you look at 2024 growth, those were the sectors that led the expansion,” he observed.
He argued that sectors like construction or government-led projects are more likely to generate employment since governments tend to see job creation as a direct mandate. Nonetheless, he maintained that predicting the employment impact of current monetary and fiscal policies remains difficult.
“The market will probably want to see a stronger signal or a firmer direction from the monetary authorities before responding in terms of job creation,” he stated.
On the public perception of interest rates, Prof. Asuming noted that the financial sector and middle class tend to view high interest rates unfavorably, while the broader population is more concerned with “bread and butter” issues such as employment and income stability.
“Generally, a high interest rate environment signals economic instability, which wouldn’t be good for growth. But I don’t know if that’s how the ordinary Ghanaian sees it,” he concluded.
