Economist Urges Government to Focus on Job Creation
By: Solomon Nartey Tetteh
Economist, Evans Nunoo has called on government to pivot from its strong focus on macroeconomic stabilisation to aggressive job creation, warning that current gains in inflation control are not translating into improved livelihoods for many citizens.
Speaking on Business Breakfast on Zed 101.9FM, Dr. Nunoo questioned how long authorities intend to prioritise stabilisation at the expense of employment. He noted that Ghana’s inflation rate, now hovering around 3.3 percent, compares favourably with advanced economies such as the United Kingdom, but argued that the achievement comes with trade-offs.
“Economics makes it clear that when you target inflation aggressively, you often sacrifice employment. It is unrealistic to suggest that reducing inflation alone will automatically create jobs,” he stated.
Dr. Nunoo acknowledged that the current administration has made significant strides in restoring macroeconomic stability, particularly by bringing inflation down from previous highs of about 23 percent. However, he stressed that the tightening measures used to achieve this such as limiting money supply and curbing spending have slowed economic activity and constrained business growth.
According to him, many Ghanaians are yet to feel the benefits of these macroeconomic improvements. “People say they are not feeling the gains in their pockets, and that is understandable,” he explained, pointing to reduced consumer demand and sluggish markets as key concerns.
Dr. Nunoo stressed that the next phase of economic policy should focus on stimulating growth by easing contractionary monetary and fiscal policies. This, he said, would encourage spending, boost production, and ultimately create jobs, particularly for the youth.
“It is now time to expand the economy. Stability is important, but without jobs and increased economic activity, the broader population will not feel the impact,” he emphasised.
The economist also advised policymakers and businesses not to allow global uncertainties to paralyse decision-making, stressing that Ghana must continue to function despite ongoing geopolitical tensions.
He said while conflicts in other parts of the world could escalate or end abruptly, their unpredictable nature should not halt economic activity or planning.
“We cannot put our lives on hold because of uncertainty,” he stated.
Dr. Nunoo acknowledged that global conflicts, particularly those affecting key commodities like oil pose potential risks to economies worldwide. He noted that disruptions involving major oil supply routes could have serious implications, given that a significant portion of global oil flows through such regions.
Despite these risks, Dr. Nunoo emphasised that Ghana is not directly at war and therefore must continue to pursue economic activities while remaining cautious.
He explained that uncertainty is an inherent part of global economic dynamics, and decisions should be guided by current realities rather than fear of the unknown.
