The World Bank has categorically rejected the Akufo-Addo administration’s assertion that Ghana’s 2022 economic debacle was precipitated by global shocks.
Instead, the Bank unequivocally attributes the crisis to Ghana’s inherent structural vulnerabilities and precarious macroeconomic conditions, which were merely exacerbated by the pandemic and the Russia-Ukraine conflict.
As articulated in its 2025 Policy Notes on Ghana, the World Bank posits, “The deterioration of global conditions due to the COVID-19 pandemic and the Russian Federation’s invasion of Ukraine was not the cause of the 2022 macroeconomic crisis; rather, it merely exposed an economy already beset with deep structural vulnerabilities and precarious macroeconomic conditions.”
The Bank’s analysis underscores the crucial role of domestic policy failures in precipitating the crisis, citing weak governance, fiscal indiscipline, and delayed reforms as the primary catalysts. This toxic cocktail has perpetuated a vicious cycle of fiscal expansion followed by draconian corrections, necessitating Ghana’s recourse to 17 separate IMF programs over the past 68 years.
The human toll of this economic mismanagement has been devastating, with over 800,000 Ghanaians forced into poverty and income per capita stagnating at a paltry $2,200 for over a decade. Furthermore, the report warns of renewed fiscal profligacy, citing unbudgeted spending commitments of $4.8 billion, which threatens to further destabilize the economy.
“Spending indiscipline poses a critical challenge to Ghana’s macro-fiscal stability… the absence of stringent expenditure controls frequently results in budget overruns and excessive borrowing, undermining efforts to maintain fiscal discipline and compromising long-term sustainability,” the Bank cautions.
In light of these findings, the World Bank emphasizes the imperative of a paradigm shift, stressing that Ghana’s economic salvation hinges on a resolute commitment to reform. To extricate itself from the quagmire of crisis and bailout cycles, Ghana must restore fiscal discipline, expand its tax base, reform state-owned enterprises, and strengthen governance.
“Success will ultimately be measured by the ability of the government to regain the trust of its citizens.”
