Ghana’s economy is projected to expand by 4.2% in 2025 and 4.8% in 2026, according to the World Bank’s latest Global Economic Prospects report.
While the forecast signals a recovery, growth remains below the pre-pandemic average of 5%, with risks to the outlook skewed to the downside.
The World Bank warned that a sharper-than-expected slowdown in China, escalating geopolitical tensions—particularly in the Middle East—and worsening instability in East Africa and the Sahel could weigh on economic performance.
Additionally, persistent inflation could keep global interest rates elevated, increasing debt-servicing costs for emerging markets. More frequent and severe climate-related shocks also pose a threat to economic stability across Sub-Saharan Africa (SSA).
Per the World Bank, growth in SSA is estimated to have picked up from 2.9% in 2023 to 3.2% in 2024, though this is 0.3 percentage points lower than the Bank’s June 2024 projection.
The downward revision reflects the economic fallout from ongoing conflict in Sudan and country-specific challenges that hampered the region’s recovery last year.
Meanwhile, Ghana’s 2024 GDP growth forecast has also been revised downward to 4%, from an earlier estimate of 4.8% in the October 2024 Africa Pulse report.
The revised projection now aligns with the International Monetary Fund’s (IMF) estimate, as the country continues to navigate fiscal consolidation efforts under its IMF-supported programme.
Source: Norvanreports