Ghana’s Economy Is Poised for Expansion in 2026 — Economist

By Praisebell Rosemond Larbi

Economist and lecturer at Academic City University, Dr. Paul Appiah Konadu, says the 2026 Budget signals a major economic turning point for Ghana, driven largely by a dramatic increase in capital expenditure (CAPEX) that prioritises infrastructure and productive investments. He believes the country is positioning itself for genuine expansion after years of limited fiscal space and austerity.

Speaking on the government’s 2026 fiscal program, Dr. Konadu noted that one of the most defining features of the budget is the leap in capital expenditure from GH¢33 billion in 2025 to a projected GH¢57.5 billion next year. He described the increase as one of the strongest indications that government intends to channel resources into real development rather than short-term consumption.

According to him, many Ghanaians have long grown skeptical about grand infrastructure promises that often resurface during election seasons but rarely translate into reality. However, based on the figures contained in the 2026 Budget, he believes the narrative may finally be shifting toward implementation and physical transformation.

He explained that nearly GH¢30 billion of the new capital allocation has been set aside for what the government describes as its “big push” infrastructure agenda, including the Accra-Kumasi Expressway and other major national roads, bridges, industrial corridors and public works. “This is very progressive, and that will open up the economy. We are able to make all these investments in our road network, in our bridges, that will open up the economy,” he said.

Increasing Connectivity to Unlock Economic Value

Dr. Konadu stressed that infrastructure has multiplier effects that go beyond movement of vehicles. Improved road networks, he stated, reduce travel time, lower transport costs, expand markets, boost trade and investment, promote regional commerce and help businesses scale faster. He said every sector of the economy, from agriculture to tourism and manufacturing, responds positively when logistics barriers are removed.

One of the standout initiatives for him is the plan to construct 1,000 kilometres of rural farm roads. He believes this single intervention has the potential to unlock suppressed value along the agricultural value chain by improving accessibility to remote farming communities. He added that reliable road infrastructure can drastically reduce post-harvest losses, improve supply flow to urban markets, support price stability and increase earnings for farmers and aggregators.

“Under infrastructure, we also seek to construct about 1,000 kilometres of rural farming roads, which will open up these areas to market centres, facilitate the transportation of food products, which is another beautiful thing in this budget,” he stressed.

Fiscal Stability Strengthening as Borrowing Pressures Ease

Beyond physical infrastructure, Dr. Konadu welcomed the positive trajectory of Ghana’s fiscal outlook. The 2026 Budget projects a reduction in the fiscal deficit from 2.8 percent in 2025 to 2.2 percent next year. He said this development indicates progress toward lowering borrowing needs and building a stronger foundation for long-term debt sustainability.

According to him, the preferred outcome is to gradually transition toward operating surpluses on a commitment basis, meaning government would spend within the limits of what it earns rather than relying heavily on debt. “That is the way to go,” he remarked, adding that it demonstrates that the state is pursuing stability while also investing in growth.

A Turning Point for Ordinary Ghanaians?

Dr. Konadu emphasised that what makes this particular shift significant is the link between the budget and tangible benefits that citizens will experience directly. He said that when road networks improve, goods move easily and quickly, businesses expand, and communities that once felt marginalised suddenly become commercial hubs. In that sense, infrastructure becomes a practical driver of quality of life rather than an abstract economic metric.

He added that if government maintains the momentum of reducing the deficit, stabilising inflation, maintaining cedi stability and investing in infrastructure at the same time, the country could enter a new phase of broad-based growth.

He concluded that the revised structure of capital spending is critical not because of the sheer size of the allocation, but because of its targeted nature and potential to stimulate employment, support industrialisation, enhance productivity and open the economy.