Ghana is recognized by the World Bank as one of a few African economies expected to see significant improvements in primary fiscal balances between 2024 and 2026. This recognition supports the country’s ongoing fiscal consolidation efforts.
The World Bank’s findings are detailed in the latest Africa Economic Update: Making Industrial Policy Work in Africa, released on April 8, 2026. The report highlights Ghana, Guinea-Bissau, Senegal, Sierra Leone, and Togo as economies demonstrating measurable progress in aligning government revenues with primary expenditures.
Fiscal Balance Improvements
The World Bank attributes Ghana’s progress to strengthened revenue mobilization and controlled non-interest spending, key components of the country’s International Monetary Fund (IMF) program. Ghana’s inflation has decreased significantly, and economic output expanded by 6 percent in 2025, with end-of-year inflation projected at approximately 9 percent.
Debt and Investment Challenges
Despite improvements in the primary balance, challenges remain. The ratio of external public debt service to revenue has doubled over eight years, rising from 9 percent in 2017 to 18 percent in 2025. Public capital investments are also approximately 20 percent below their 2014 level. High debt servicing costs are limiting fiscal space for infrastructure, health, and education.
Regional Economic Outlook
Sub-Saharan Africa’s growth is projected to remain at 4.1 percent in 2026, unchanged from 2025, but facing potential risks. Factors such as spillovers from the Middle East conflict, high debt burdens, and structural weaknesses are impacting growth and job creation across the continent.
Ghana’s Growth Projection
The World Bank projects Ghana’s GDP growth at 4.8 percent in 2026, a slight decrease from the 6 percent recorded in 2025. Sustaining this growth will depend on fiscal discipline and effective debt management.
Recommendations for African Economies
World Bank Group Chief Economist for the Africa Region, Andrew Dabalen, emphasized the need for governments to support vulnerable populations while maintaining macroeconomic stability. He stressed the importance of prudent fiscal management and inflation control to navigate economic shocks and foster a stronger recovery.
Future Considerations for Ghana
While Ghana’s inclusion among the top fiscal improvers indicates positive results from consolidation efforts, analysts caution that sustained reform is necessary to achieve durable economic transformation. Areas of focus include revenue administration, energy sector financing, and export diversification.
