The World Bank has dismissed the Akufo-Addo administration’s long-standing claims that Ghana’s 2022 economic collapse was driven by global shocks.
For years, the former Akufo-Addo government and appointees attributed the severity of Ghana’s economic downturn, surging inflation, and a free-falling currency to the COVID-19 pandemic and the Russian-Ukrainian war.
The World Bank, however, argues that domestic policy failures were decisive.
According to the World Bank, the former Akufo-Addo government’s economic collapse was self-inflicted, citing weak governance, fiscal indiscipline, and delayed reforms.
In the World Bank 2025 Policy Notes on Ghana, it reads, “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; rather, it merely exposed an economy already beset with deep structural vulnerabilities and precarious macroeconomic conditions.”
“Sudden macroeconomic stops and crises have led the country to request a record number of IMF programs, remaining under active IMF support for 40 out of its 68 years of history,” the Bank noted.
The Bank further cautioned, “Spending indiscipline poses a critical challenge to Ghana’s macro-fiscal stability… the absence of stringent expenditure controls frequently results in budget overruns and excessive borrowing, undermining efforts to maintain fiscal discipline and compromising long-term sustainability”.
The World Bank stressed that Temporary fixes will not suffice, “There is an urgent need to signal a clear break from the past and a commitment to change… Success will ultimately be measured by the ability of the government to regain the trust of its citizens.”
However, President John Dramani Mahama, in New York, admitted that the Covid-19 pandemic hurt Ghana’s economy—showing that he knew the truth during the 2024 election campaign but chose not to say it.
Mahama stated, “The Covid-19 pandemic erased two decades of poverty reduction in less than two years”.
Additionally, Mahamudu Bawumia has taken a swipe at former President John Mahama, accusing him of double standards.
Speaking on his campaign tour of the Eastern Region, Dr Bawumia stated, “I have read that President Mahama, in an address in New York, admitted that prices of goods and services increased in Africa because of the economic challenges, and that over a decade of poverty reduction efforts were thwarted by the two-year pandemic. This shows he knew the truth, but he didn’t say the same during the election period”.
“From 2022, when the impact of Covid-19 hit the country’s economy, prices of goods went up. And during the 2024 election, we said that the cost of living had been largely impacted by Covid-19 and the Russia-Ukraine war. When we said that, President Mahama and the NDC claimed we were lying,” Dr Bawumia stated.
Bawumia added, “They said Covid-19 had no impact on the economy. They said it was rather economic mismanagement. But I have read that President Mahama, in New York, admitted that COVID-19 really impacted economies. He said a lot of our poverty reduction efforts over many years have been thwarted by Covid-19.”
“The President knew the truth, but he didn’t say it during the campaign. But by the grace of God, he has now admitted the truth”, he concluded.