World Bank applauds Ghana’s economic gains but flags persistent challenges

Ghana has made impressive strides in stabilizing its economy, showing key improvements in inflation, debt restructuring, and fiscal consolidation, says the World Bank Country Director.

Robert Taliercio O’Brien acknowledged Ghana’s progress but noted significant work remains for a full recovery.

In an interview, he praised the government’s efforts to improve the country’s macroeconomic indicators.

“Inflation has been reduced, so it’s on a declining path, and it needs to keep declining. It’s still too high, but good progress is being made, thanks in part to the policy position of the government,” he noted.

He noted that the World Bank is especially optimistic about the progress in debt restructuring as a key area of reform.

“Ghana implemented the domestic debt restructuring in 2023 and reached an agreement under the G20 Common Framework with its official creditors,” Mr O’Brien stated.

He stressed the importance of this development, explaining that a Memorandum of Understanding on restructuring the official bilateral debt was achieved and is currently in progress.

“As of June of this year, the government announced an agreement in principle with the commercial bondholders, which is the third piece of the debt restructuring program. So again, very good progress, but more to do,” he added.

The World Bank official also commended the government’s fiscal consolidation efforts, which have led to a significant reduction in public spending.

“We saw very important measures taken by the government to reduce expenditures last year, which resulted in a 7.9 percentage point decrease in spending,” he said, describing it as “a very significant effort” to get fiscal management back on track.

Despite notable achievements, the World Bank warns that Ghana’s economic recovery is still a work in progress.

“There’s more to do,” the official stressed, urging continued focus on maintaining gains and tackling remaining challenges”.

The interview highlights Ghana’s progress and the hurdles ahead, with the World Bank’s endorsement serving as both praise for the government’s efforts and a reminder of the long road to complete recovery.