The World Bank has entreated the Government of Ghana to be cautious despite the progress toward economic recovery, particularly in areas such as inflation control, debt restructuring, and fiscal consolidation.
World Bank Country Director, Robert Taliercio O’Brien, praised the government’s efforts but stressed that further work is essential to fully stabilize the economy.
In an interview on Joy News’ PM Express on Thursday, O’Brien commended the government’s policies that have led to a downward trend in inflation.
“Inflation has been reduced, so it’s on a declining path, and it needs to keep declining. It’s still too high, but good progress is being made, thanks in part to the policy position of the government,” he explained.
The World Bank official also highlighted Ghana’s progress on debt restructuring, a critical reform area.
“Ghana implemented the domestic debt restructuring in 2023 and reached an agreement under the G20 Common Framework with its official creditors,” O’Brien noted.
He emphasized that a Memorandum of Understanding for restructuring official bilateral debt has been established and is actively progressing.
O’Brien further pointed out that as of June, the government had reached an agreement in principle with commercial bondholders, marking another significant step in the debt restructuring process.
“So again, very good progress, but more to do,” he stated, underscoring the need for continued efforts in this area.
In addition to debt restructuring, O’Brien commended the government’s fiscal consolidation efforts, which led to a notable reduction in public spending.
“We saw very important measures taken by the government to reduce expenditures last year, which resulted in a 7.9 percentage point decrease in spending,” he said, describing this as a critical step toward restoring fiscal discipline.
Despite these achievements, the World Bank official urged the government to remain focused on addressing the remaining challenges.
“There’s more to do,” O’Brien reiterated, acknowledging the progress made while emphasizing that the road to full economic recovery requires sustained commitment.