2022 ECONOMIC CRISIS WAS RESULT OF WRONG POLICY CHOICES - FINANCE MINISTER

The Minister for Finance, *Dr. Cassiel Ato Forson*, says Ghana’s economic crisis in 2022 was not an accident, but the direct result of a series of wrong policy choices by the previous government.

Presenting the *Mid-Year Fiscal Policy Review of the 2026 Budget* in Parliament on Thursday, July 23, 2026, Dr. Forson said the crisis stemmed from *reckless spending, excessive and bench borrowing, lack of accountability, and a failure to be truthful with Ghanaians* about the true state of the economy.

*"Mr Speaker, the economic crisis of twenty twenty-two was not merely an accident. It was the consequences of a series of wrong policy choices,"* he stated.

The Finance Minister outlined the severe impact on Ghanaians:

- *The cedi depreciated* at levels never seen before, eroding savings, business capital, and purchasing power

- *Inflation exceeded 50 percent*, dramatically increasing the cost of living and placing basic necessities beyond the reach of many

- *Disposable incomes declined sharply* while *interest rates surged*, making credit expensive for the private sector

- *Investor confidence collapsed* and *international reserves fell to extremely low levels*

Dr. Forson said international credit rating agencies downgraded Ghana’s sovereign debt to levels never seen in the country’s history, and Ghana lost access to the international capital market.

As a result, he noted, the previous government implemented the most painful debt restructuring program in the country’s history, which imposed *"crude and painful haircuts on domestic and external bond holders."*