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The Bank of Ghana (BoG) has warned that the final stages of the country’s external debt restructuring programme could place temporary pressure on Ghana’s external payments position, highlighting the need for stronger domestic savings and adequate foreign exchange reserves to support future debt obligations.
In its May 2026 Monetary Policy Report (MPR), the central bank noted that while the debt restructuring process is expected to strengthen Ghana’s long-term fiscal outlook, it could generate short-term challenges for external payments and exchange rate stability.
The BoG stressed that building domestic savings would be critical to easing future debt servicing obligations, while maintaining healthy foreign reserve levels would help cushion the economy against external financing pressures as debt repayments resume.
The report also identified global economic uncertainties—including commodity price volatility and ongoing geopolitical tensions—as key risks that could affect Ghana’s fiscal performance and broader macroeconomic stability.
Despite these concerns, the central bank said the government met its fiscal targets during the early months of 2026, supported by stronger revenue mobilisation and disciplined fiscal management.
According to the report, revenue collections improved in April following the implementation of new measures introduced under the 2026 Budget.
The BoG attributed the stronger performance partly to the deployment of technology and artificial intelligence (AI) to improve tax administration, reduce revenue leakages, and enhance collection efficiency.
“Revenue yields seem to be picking up in the month of April 2026 with the steady implementation of the new revenue measures outlined in the 2026 budget. This is on the back of infusing technology and AI, not only to plug revenue loopholes but also to enhance efficiency in collections,” the report stated.
The central bank disclosed that the government’s fiscal operations recorded stronger-than-expected results during the first quarter of 2026. Budget execution produced an overall surplus of GH¢1.709 billion, equivalent to 0.1 per cent of GDP, outperforming the projected deficit of GH¢18.578 billion, or 1.2 per cent of GDP.
Similarly, the primary fiscal balance on a commitment basis recorded a surplus of 1.2 per cent of GDP, significantly exceeding the budget target of 0.2 per cent.
On a cash basis, the government also posted an overall budget surplus of GH¢824.3 million, representing 0.1 per cent of GDP, compared with an anticipated deficit of GH¢20.924 billion, equivalent to 1.3 per cent of GDP.
The BoG said the stronger fiscal performance reflects the positive impact of ongoing revenue reforms but emphasised that prudent fiscal management, sustained revenue mobilisation, and successful completion of the external debt restructuring programme remain essential to safeguarding Ghana’s macroeconomic stability and long-term debt sustainability.
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