Strong Disinflation and Lower Interest Rates Set Stage for Ghana’s 2026 Economic Recovery

Ghana is poised for a significant economic rebound in 2026, thanks to strong disinflation trends and declining interest rates, according to the Centre for Policy Scrutiny (CPS). In its review of the 2026 budget and economic policy, CPS highlighted these developments as critical enablers for growth, signalling that fiscal prudence and monetary discipline are beginning to deliver tangible results for the country.

At a media briefing on November 20, 2025, CPS emphasised that Ghana’s fiscal and monetary strategies are already yielding positive outcomes. Stabilised prices and lower borrowing costs are creating an environment favourable for private sector-led growth, job creation, and entrepreneurial activity. Dr Adu Owusu Sarkodie, CPS Executive Director, described the period as “a foundation for a robust economic recovery in 2026,” reflecting growing optimism among policymakers and investors alike.

The 2026 budget includes targeted fiscal measures to improve revenue collection while controlling non-essential spending, helping maintain macroeconomic stability. Additionally, the Bank of Ghana’s projected reduction in the policy rate is expected to lower borrowing costs across sectors such as agriculture, manufacturing, and housing, stimulating investment and long-term development.

Infrastructure development also remains a priority, with plans for road networks, energy projects, and urban housing designed to support sustainable economic growth. CPS noted that these measures align closely with Ghana’s medium-term recovery plan and the government’s broader development objectives, providing both immediate and lasting benefits for the economy.

Despite these positive trends, CPS cautioned that external risks—like global commodity price volatility and shifting international financing conditions—could pose challenges. The organization stressed the importance of transparent policy execution, stakeholder engagement, and ongoing reforms to strengthen revenue mobilization, enhance public sector efficiency, and support private sector resilience. Dr. Sarkodie highlighted that lower interest rates could particularly benefit SMEs, fueling entrepreneurship, industrialization, and employment opportunities for ordinary Ghanaians.

source: citi newsroom