World Bank’s 2025 Policy Notes reveal that Ghana’s 2022 economic crisis was not caused by COVID-19 or the Ukraine-Russia war

The World Bank has debunked the allegations that Ghana’s 2022 economic crisis was largely caused by the COVID-19 pandemic and the war in Ukraine.

In its latest 2025 Policy Notes: Transforming Ghana in a Generation, the Bank argues that the two factors instead revealed long-standing structural flaws and economic vulnerabilities that had been building for years.

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According to the report, Ghana’s public finances were already fragile before the external shocks hit as government was consistently spending beyond its means.

Revenue collection remained its lowest. At the same time, large losses from state-owned enterprises recorded a net losses of roughly GHS 14.4 billion.

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These weaknesses left Ghana especially vulnerable when global pressures arrived like the COVID-19 arrived.

The currency collapsed, inflation soared to more than 54 percent by the end of 2022, and public debt surged to unsustainable levels.

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But the World Bank insists that these shocks only exposed problems that had long existed—loose fiscal discipline, persistent inefficiencies, and an overreliance on natural resource exports such as gold, cocoa, and oil.

The report also warned that without deep reform, Ghana risks repeating the same cycle of instability and calls for urgent measures.

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