The World Bank says Ghana’s fiscal deficit will remain elevated throughout 2023–2025.

According to its April 2023 Africa Pulse Report, the large deficit is expected to be compounded by severe financing constraints resulting from a limited ability to issue long-term domestic debt and a lack of access to international capital markets.

“The deficit in Ghana will remain elevated throughout 2023–25, with the large deficit being compounded by severe financing constraints resulting from a limited ability to issue long term domestic debt and a lack of access to international capital markets.”

The report however said the successful agreement and implementation of an International Monetary Fund (IMF)-supported programme would help contain the deficit and provide the necessary financing, including via the ongoing debt restructuring negotiations.

Ghana’s fiscal deficit stood at more than 9% of Gross Domestic Product in 2022.

The World Bank added that the fiscal deficit in Sub-Saharan Africa is projected to have widened from 4.8% in 2021 to 5.2% in 2022.

It is expected to narrow to 4.3% in 2024 and to an average of 3.0% in 2024–25.

The widening of the fiscal deficit in 2022 was mainly driven by the deterioration in fiscal outcomes among mineral and metal exporters in the region.