The Trades Union Congress (TUC) of Ghana has called for a new economic policy framework that directly addresses the structural challenges undermining the country’s economic and social development.
The Union made this demand in a document released on the eve of the 2025 Budget and Economic Policy presentation by the Finance Minister to Parliament.
According to the TUC, Ghana’s economic struggles are the result of four decades of policies rooted in the Washington Consensus, which have failed to resolve deep-seated economic constraints.
The Union insists that the country needs a shift in policy direction, one that prioritizes domestic production over import dependence, limits the dominance of foreign companies in key sectors, and builds a strong manufacturing base.
“A country that relies heavily on a few natural resources will always struggle to create decent jobs and will continue to face fiscal challenges,” the TUC warned.
The Union pointed to the adverse effects of trade liberalization, which had led to an influx of imports, the collapse of domestic manufacturing, and persistent current account deficits. These, in turn, the Union maintained had fuelled the depreciation of the Ghana cedi and weakened the economy.
The TUC further criticized Ghana’s adoption of inflation targeting as a key monetary policy, arguing that the Bank of Ghana’s approach is flawed. It described the central bank’s policy of raising interest rates to curb inflation as counterproductive, as it stifles local businesses and reduces job creation.
“Ghanaians have faced significant economic hardships in recent years, including slow post-pandemic growth, rising inflation, currency depreciation, and high public debt, which led to a default in 2022. Debt restructuring has also eroded personal savings and pension funds, worsening the cost-of-living crisis,” the TUC submitted.
The TUC urged the government to adopt a new macroeconomic strategy that prioritizes local industrialization, reduces external economic vulnerabilities, and fosters sustainable economic growth.
The Union insisted that without these changes, Ghana’s economy will continue to struggle with unemployment, financial instability, and declining living standards.
Source: TheHighStreetJournal