Deloitte says Ghana’s economic recovery remains on track

Professional services firm Deloitte says Ghana’s economic recovery remains firmly on course, citing strong economic growth, easing inflation, improved debt sustainability and stronger revenue performance as key indicators of progress.

In its assessment of the 2026 Mid-Year Budget Review, Deloitte said the government has remained committed to fiscal consolidation, debt sustainability and macroeconomic stability, maintaining the policy direction outlined in the 2025 and 2026 budgets.

According to the firm, Ghana’s economy expanded by 6.4 per cent in the first quarter of 2026, surpassing the government’s full-year growth target of 4.9 per cent. It noted that growth is becoming more diversified, with sectors including information and communications technology, mining, trade and manufacturing driving economic activity.

Deloitte also highlighted the sharp decline in inflation from more than 23 per cent at the end of 2024 to 5.3 per cent in June 2026, saying the improvement has strengthened purchasing power, boosted business confidence and created room for lower borrowing costs.

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The report further pointed to significant improvements in the country’s fiscal position, noting that debt servicing costs have fallen from 55.7 per cent of domestic revenue in 2022 to 28.6 per cent by mid-2026, creating additional fiscal space for investment in infrastructure, health and education.

Revenue performance also remained encouraging, with non-oil tax revenue increasing from 12.6 per cent of GDP in 2024 to 13.1 per cent in 2025 despite the removal of several taxes. Deloitte attributed the increase to improved tax compliance, stronger revenue administration and greater use of technology rather than higher tax rates.

However, the firm cautioned that challenges remain, warning that liabilities in the energy sector, particularly at the Electricity Company of Ghana (ECG), continue to pose a significant fiscal risk if ongoing reforms are not sustained.

Deloitte also expressed concern over Ghana’s continued reliance on short-term domestic borrowing, warning that it could increase refinancing risks and future interest costs.

The firm said the country’s challenge now is to maintain fiscal discipline beyond the International Monetary Fund programme, continue reforms and address structural weaknesses to support long-term economic growth and resilience.