The World Bank has cautioned Ghana against becoming complacent over its recent economic gains, urging the government to deepen structural reforms to ensure that economic growth translates into jobs and improved livelihoods.
The Bank acknowledged Ghana’s progress, including six per cent economic growth and a sharp decline in inflation from 23.2 per cent in 2023 to 3.2 per cent in March 2026.
However, it warned that underlying vulnerabilities could still threaten the durability of the recovery if reforms are not sustained.
The assessment was contained in the World Bank’s 10th Ghana Economic Update, launched in Accra on Wednesday under the theme: “Reset for Growth: Sustaining Macroeconomic Recovery and Unlocking Transport for Transformation.”
Growth must create more jobs
Dr Robert Taliercio O’Brien, World Bank Division Director for Ghana, Liberia and Sierra Leone, said Ghana had entered 2026 at a critical point where the priority must be to convert macroeconomic stability into employment opportunities and stronger public finances.
He acknowledged that government policies had contributed to the improved economic performance but stressed that Ghana was “not out of the woods yet.”
According to him, maintaining fiscal consolidation would require stronger revenue mobilisation and reforms to improve the effectiveness of the tax system.
Dr O’Brien also questioned whether the current recovery could be sustained, noting that policy decisions taken in the coming period would determine whether the gains achieved so far lead to lasting economic transformation or remain vulnerable to external shocks.
Gold and services driving growth
The World Bank official noted that recent economic growth had been concentrated largely in the gold and services sectors.
He cautioned that these sectors had limited capacity to absorb the growing labour force compared with the pace of Ghana’s demographic expansion.
He therefore called for a shift towards sectors capable of generating more employment, particularly agriculture, agro-processing and manufacturing.
Dr O’Brien said increasing productivity in these areas would be critical to creating the jobs needed to make economic growth more inclusive.
He further disclosed that 36.4 per cent of Ghanaians remain outside the formal tax system, limiting government’s ability to mobilise resources for public services and infrastructure.
Reforms needed beyond financial support
Dr O’Brien assured that the World Bank would continue supporting Ghana’s economic transformation and job creation efforts.
However, he stressed that financial assistance alone would not deliver sustainable transformation without strong political commitment and the institutional capacity to implement reforms effectively.
Government promises renewed infrastructure investment
Finance Minister Dr Cassiel Ato Baah Forson, in a speech read on his behalf, acknowledged that strong headline economic growth had not yet translated into meaningful benefits for a significant proportion of the population.
He said government was therefore placing emphasis on infrastructure investment and poverty reduction, with transport infrastructure expected to stimulate economic activity and create employment.
Dr Forson said the government would not maintain cuts in capital expenditure indefinitely.
Instead, he explained that capital investment would gradually be restored as fiscal conditions improve, while maintaining discipline in public spending.
He said Ghana’s strategy was to consolidate the economic recovery through disciplined implementation, strategic investment in transport infrastructure and sustained partnerships.
The objective, he added, was to translate macroeconomic stability into jobs, food security and broader prosperity.
The Finance Minister reaffirmed government’s commitment to working with development partners, including the World Bank, to strengthen economic resilience and close critical infrastructure gaps.
