The World Bank has pushed back against claims that Ghana’s 2022 economic crisis was primarily triggered by external shocks such as the COVID-19 pandemic and the Russia–Ukraine war.
In its latest assessment in a report titled, Transforming Ghana in a Generation, the Bretton Woods institution said the deterioration in global conditions only “exposed an economy already beset with deep structural vulnerabilities and precarious macroeconomic conditions.”
The position of the Bank challenges a narrative widely promoted by past government officials, who have consistently blamed the twin global shocks for the sharp depreciation of the cedi, soaring inflation, fiscal slippages and debt distress experienced during the 2022 crisis.
The report adds that while global events did intensify existing pressures, they were for the economic quagmire.
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“The deterioration of global conditions due to the COVID-19 pandemic and the Russian Federation’s
invasion of Ukraine was not the cause of the 2022 macroeconomic crisis”, the policy note mentioned.
According to the World Bank, years of fiscal imbalances and structural inefficiencies had left Ghana’s economy highly exposed to external pressures; making it one of the first African countries to seek IMF support amid post-pandemic recovery challenges.
The Bank’s position reignites debate over Ghana’s policy choices before 2022 and the urgency of addressing persistent vulnerabilities that continue to limit the economy’s growth potential.
