- The World Bank says Ghana is making steady progress
- Ghana remains on track for economic recovery in 2024
- World Bank recommends further reforms
The World Bank’s latest economic update for Ghana indicates that the country is making steady progress in recovering from the severe macroeconomic challenges of 2022.
Despite recent economic headwinds, including increased exchange rate volatility and slower-than-expected inflation decline, Ghana remains on track for economic recovery in 2024 and beyond.
The report highlights the government’s efforts to restore fiscal and debt sustainability, reduce inflation, and strengthen financial stability.
These measures have contributed to a gradual economic improvement, with growth reaching 2.9% in 2023 and inflation declining from a peak of 54.1% in December 2022 to 23.2% by the end of the year.
While acknowledging the progress made, the World Bank emphasizes the need for sustained reforms to build a more resilient and inclusive economy.
The report recommends focusing on improving the quality of fiscal adjustment, strengthening public financial management, and boosting domestic revenue mobilization.
To accelerate economic growth and diversification, the World Bank suggests investing in infrastructure, improving the business climate, and enhancing human capital. Additionally, the report calls for rationalizing tax exemptions to increase government revenue and support social protection programs.
“Ghana has made significant strides in addressing its macroeconomic challenges, but there is still work to be done,” said Michelle Keane, World Bank Acting Country Director for Ghana, Liberia, and Sierra Leone. “By implementing comprehensive reforms and prioritizing social protection, Ghana can build a more sustainable and inclusive future.”
The World Bank’s economic update serves as a roadmap for Ghana to navigate its path to recovery and achieve long-term prosperity.
Key points:
- Ghana’s economy is showing signs of recovery from the 2022 crisis.
- Government efforts to stabilize the economy are yielding positive results.
- World Bank recommends further reforms to build a resilient and inclusive economy.
- Boosting domestic revenue and investing in infrastructure are crucial for growth.
