The World Bank has disputed claims that Ghana’s 2022 economic crisis was primarily caused by external shocks such as the COVID-19 pandemic and the Russia–Ukraine war, insisting the turmoil was rooted in domestic fiscal imbalances and structural weaknesses.
In a new report titled Transforming Ghana in a Generation, the Bank stated that while global disruptions did worsen existing pressures, they were not the cause of the sharp cedi depreciation, runaway inflation, fiscal slippages, and debt distress that plunged the economy into crisis.
“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,” the report emphasised.
According to the Bretton Woods institution, Ghana entered the crisis with precarious macroeconomic fundamentals, including ballooning deficits, unchecked expenditure, and weak revenue mobilisation. These long-standing issues left the economy heavily exposed when global shocks struck.
The Bank observed that Ghana became one of the first African countries to seek IMF support after the pandemic, a reflection of how fragile the economy had become even before external headwinds.
The position challenges a narrative pushed by past government officials who largely attributed the economic downturn to external shocks. The Bank’s analysis, however, points to policy missteps and structural inefficiencies as the root causes, reigniting debate over Ghana’s economic management in the years leading up to 2022.
The World Bank stressed the need for Ghana to undertake bold reforms to address persistent vulnerabilities, improve fiscal discipline, and unlock growth potential. Without these, the report warned, the country risks repeating cycles of economic instability despite global recovery trends.
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