Ghana’s Economy To Expand By 4.2% – World Bank
Ghana’s economy is projected to grow by 4.2% in 2025 and 4.8% in 2026, according to the World Bank’s latest report. These projected growth rates, however, remain below the pre-COVID-19 pandemic average of 5%, indicating ongoing economic challenges the country faces.
In its January 2025 Global Economic Prospects report, the World Bank noted a revision in Ghana’s Gross Domestic Product (GDP) growth projection for 2024, reducing it from an earlier estimate of 4.8% to 4.0%. This adjustment aligns with the forecasts provided by the International Monetary Fund (IMF), reflecting a tempered economic outlook for the coming year.
The World Bank has highlighted several risks that could impact Ghana’s economic outlook, skewing prospects to the downside. These include a sharper-than-expected slowdown in China’s economy, escalating geopolitical tensions, particularly in the Middle East, and worsening political instability in regions such as East Africa and the Sahel.
Additionally, persistent inflationary pressures may maintain globally elevated interest rates, further hampering highly indebted economies. Such financial conditions can affect Ghana’s ability to service its debt, possibly leading to economic strain.
Another pertinent issue is the increasing frequency of extreme weather events that pose significant risks, potentially exacerbating poverty levels across Sub-Saharan Africa (SSA). These climatic challenges underline the urgency for effective strategies to mitigate environmental impacts and their socio-economic repercussions.
Amidst these challenges, the broader Sub-Saharan African region is estimated to witness an economic growth improvement from 2.9% in 2023 to 3.2% in 2024. However, this is still 0.3 percentage points below previous projections. The shortfall is primarily attributed to ongoing conflicts, such as those in Sudan, as well as other country-specific challenges that have hindered recovery efforts across the region.
As Ghana continues to navigate these economic complexities, strategic responses addressing both domestic and international challenges will be critical to achieving sustainable growth. Continued attention to geopolitical tensions, inflation, and climate issues will form the cornerstone of maintaining not just economic stability but also future prosperity.
