Ghana has been identified by the World Bank as one of a small group of African economies expected to deliver the most significant improvements in primary fiscal balances between 2024 and 2026, a finding that reinforces the country’s ongoing fiscal consolidation effort under the administration of President John Dramani Mahama.
The recognition appears in the World Bank’s latest Africa Economic Update: Making Industrial Policy Work in Africa, released on April 8, 2026. The report states that the largest projected improvements in primary fiscal balances over the forecast period are in Ghana, Guinea-Bissau, Senegal, Sierra Leone and Togo, placing Ghana in a select group of economies making measurable strides in aligning government revenues more closely with primary expenditures.
The finding reflects progress in strengthening revenue mobilisation and containing non-interest spending, two of the central pillars of Ghana’s International Monetary Fund (IMF) programme under the Extended Credit Facility (ECF). Ghana’s inflation has already fallen sharply, from a strong 6 percent expansion in economic output in 2025, with end-of-year inflation now projected at approximately 9 percent, down from levels that exceeded 50 percent at the peak of the fiscal crisis in late 2022.
Despite the improvement in the primary balance, the broader fiscal picture carries persistent challenges. The ratio of external public debt service to revenue has doubled over the past eight years, from 9 percent in 2017 to 18 percent in 2025, while public capital investments remain about 20 percent below their 2014 level. High debt servicing costs continue to crowd out development spending across the region, limiting fiscal space for infrastructure, health and education.
The report also finds that Sub-Saharan Africa’s growth is projected to hold at 4.1 percent in 2026, unchanged from 2025, but with downside risks mounting. Spillovers from the Middle East conflict, high debt burdens and structural weaknesses are limiting growth prospects and job creation across the continent.
For Ghana specifically, the World Bank projects GDP growth of 4.8 percent in 2026, a moderation from the 6 percent recorded in 2025. The Bank cautioned that sustaining this momentum will depend on fiscal discipline and effective debt management.
World Bank Group Chief Economist for the Africa Region, Andrew Dabalen, urged governments to prioritise support for vulnerable populations while maintaining macroeconomic stability, stressing the importance of prudent fiscal management and inflation control to navigate current economic shocks and position countries for a stronger recovery.
Ghana’s inclusion among the top fiscal improvers signals that consolidation efforts are producing measurable results. However, analysts caution that converting primary balance gains into durable economic transformation will require sustained reform, particularly in revenue administration, energy sector financing and the diversification of the export base.
