The World Bank has refuted assertions that Ghana’s economic crisis in 2022 was predominantly caused by external factors, including the COVID-19 pandemic and the Russia–Ukraine conflict.
The recent report, Transforming Ghana in a Generation, from the Bretton Woods institution indicates that the decline in global conditions has revealed an economy already afflicted by significant structural vulnerabilities and unstable macroeconomic conditions.
The Bank’s stance challenges a narrative disseminated by former government officials, who have consistently ascribed the substantial devaluation of the cedi, escalating inflation, budgetary mismanagement, and financial distress experienced during the 2022 crisis to the dual global shocks.
The report suggested that while global events intensified pre-existing pressures, they were not the root cause of Ghana’s economic predicament.
The World Bank indicated that prolonged fiscal imbalances and structural inefficiencies have rendered Ghana’s economy particularly vulnerable to external pressures, positioning it as one of the initial African nations to pursue IMF assistance during post-pandemic recovery efforts.
The position of the World Bank reignites discourse surrounding Ghana’s policy choices made before 2022 and underscores the urgent necessity to address persistent vulnerabilities that impede the country’s economic growth.
Credit: Citinewsroom
