Improving economic indicators do not equal structural reform – Policy Expert

An exclusive interview with free-market advocate Eric Coffie has cast fresh light on Ghana’s recent macroeconomic gains, cautioning that improving statistics should not be mistaken for structural economic reform.

Speaking to The Sikaman Times, the Executive Director of the Institute for Liberty and Economic Education (ILEE) described Ghana’s disinflation trend—falling from over 50 percent in 2023 to about 3.8 percent in early 2026—as “a welcome sign of stability,” but insisted it reflects recovery from “state-inflicted wounds” rather than policy success.

“From a libertarian lens, the current statistics—GDP growth around 4.8% and inflation approaching the single-digit target—are justified only insofar as they reflect a cessation of the monetary indiscipline that caused the initial crisis,” he said.

Coffie acknowledged that data from the Ghana Statistical Service and the Bank of Ghana appear statistically grounded and consistent with IMF-backed fiscal consolidation. However, he argued that the stability has come at a high price.

“Much of this stability is forced through high taxes and debt restructuring rather than a genuine expansion of economic freedom,” he stated.

Addressing public frustration over stubborn market prices despite easing inflation, Coffie said the issue lies in misunderstanding disinflation versus deflation. “Prices are rising more slowly; they are not falling,” he explained, citing the “ratchet effect,” high structural costs, and input lags as factors preventing immediate price adjustments.

On government threats to enforce price reductions, Coffie was emphatic: “Price controls are an economic poison. Force leads to shortages, and controls drive goods into the shadow economy.”

He maintained that the state’s primary responsibility is ensuring monetary stability and a low-tax environment.

“If they do that, the market will handle the prices,” he concluded.