The Centre for Policy Scrutiny (CPS) has hailed the 2026 budget statement and economic policy as a key milestone for Ghana’s economic recovery, highlighting the country’s strong disinflation trajectory and falling interest rates as critical enablers for growth next year.

In its comprehensive review presented at a media briefing on Thursday, November 20, 2025, CPS noted that the government’s fiscal and monetary policies are beginning to yield positive results, particularly in stabilising prices and reducing borrowing costs.

“Ghana is witnessing a welcome period of strong disinflation and lower interest rates, which together form the foundation for a robust economic recovery in 2026,” said Dr Adu Owusu Sarkodie, Executive Director.

“These developments signal that fiscal prudence and monetary discipline are taking effect, creating an environment conducive to private sector-led growth and job creation.”

The CPS review highlighted several key areas in the 2026 budget that underpin this optimism. First, targeted fiscal measures aimed at improving revenue collection while controlling non-essential expenditure have helped maintain macroeconomic stability.

Second, the projected reduction in the policy rate by the Bank of Ghana is expected to lower the cost of borrowing, stimulating investment in critical sectors such as agriculture, manufacturing, and housing.

According to the review, the budget also places significant emphasis on infrastructure development, particularly road networks, energy projects, and urban housing, which are crucial for catalysing long-term economic growth, describing these measures as strategically aligned with Ghana’s medium-term economic recovery plan and the government’s goal of achieving sustainable development.

However, the CPS cautioned that the path to recovery is not without challenges. External risks, including global commodity price volatility and potential shifts in international financing conditions, could affect domestic economic performance.

The organisation called for continued vigilance in implementing reforms to strengthen revenue mobilisation, enhance public sector efficiency, and support private sector resilience.

Dr Sarkodie also praised the government for its commitment to improving the business environment, noting that the decline in interest rates could ease credit access for small and medium enterprises (SMEs), which are key drivers of employment and innovation.

“If properly harnessed, these lower financing costs could significantly accelerate entrepreneurship, industrialisation, and job creation, providing tangible benefits for ordinary Ghanaians,” he said.

The CPS review further stressed that the success of the 2026 economic strategy hinges on transparent policy execution and close monitoring of fiscal and monetary developments.

The organisation encouraged ongoing engagement with stakeholders, including civil society, the private sector, and development partners, to ensure that policies remain inclusive and responsive to the country’s evolving economic needs.