Ghana's economic recovery remains structurally incomplete despite strong recent growth, according to the World Bank. The country's economy grew by 6.4% in the first quarter of 2026, but persistent poverty, weak job creation, and infrastructure gaps threaten these gains.
Robert R. Taliercio, World Bank Division Director for Ghana, Liberia, and Sierra Leone, delivered this assessment. He spoke at the launch of the World Bank’s Tenth Ghana Economic Update in Accra. Mr. Taliercio noted that 56.4% of Ghanaians still live in poverty. This creates a disconnect between headline economic growth and improvements in living standards. The economy struggles to create enough jobs for its young population.
This warning comes as Ghana has made significant strides in macroeconomic stability. Headline inflation dropped from 23.2% in February 2025 to 3.2% in March 2026. The country also successfully completed its International Monetary Fund Extended Credit Facility program. Ghana recorded a primary fiscal surplus of 2.5% of GDP in 2025, exceeding its 1.5% target. Public debt decreased from 70.3% of GDP in 2024 to 49% by the end of 2025.
“Government deserves full credit for the difficult decisions that made these results possible,” Mr. Taliercio stated. However, he cautioned that these gains should not hide underlying structural weaknesses. He explained that the fiscal surplus was largely achieved through expenditure compression. Capital spending was 38% below budget, an approach he deemed unsustainable for long-term growth and development.
The World Bank official emphasized that Ghana must strengthen domestic revenue mobilization. This is crucial for sustained fiscal consolidation. He also called for addressing poverty and inequality. The Bank projects economic growth at 4.8% in 2026, stabilizing around 5% over the medium term. This depends on maintaining fiscal discipline and completing external debt restructuring.
The outlook faces risks from both domestic and external factors. A prolonged Middle East conflict could disrupt global trade and increase energy costs. Ghana's reliance on gold and cocoa exports makes it vulnerable to commodity price swings. Domestically, financial pressures in the energy and agricultural sectors are major concerns. Delays in energy sector recovery programs cost Ghana approximately $1 billion annually. Reforms to the Ghana Cocoa Board (COCOBOD) are also necessary to address inefficiencies and reduce pressure on farmers and public finances.
Transport infrastructure remains a significant constraint to economic transformation. Only 27% of Ghana’s 94,200-kilometre road network is paved. More than half of the network is in fair-to-poor condition, especially feeder roads. Ghana’s rail network has also declined sharply, from 947 kilometres in 1960 to just 160 kilometres in 2020. Road safety incidents alone cost Ghana about 2.1% of GDP annually, approximately $4.55 billion.
The World Bank is supporting Ghana's efforts through the Ghana Market Access and Connectivity Project. This project, ratified by Parliament in July, involves a $500 million investment. It will rehabilitate approximately 1,050 kilometres of feeder roads. This investment targets areas where poor connectivity hinders agricultural productivity. The Bank advocates for a unified national transport strategy and revitalizing rail services.