The World Bank has revised downwards by 100 basis points (1%) Ghana’s projected GDP growth rate for 2026.
Per the Bank’s latest Global Economic Prospects report, Ghana’s economy will grow at a rate of 4.9% which is less than the 5% GDP growth rate earlier projected by the Bretton Wood Institution.
The World Bank has, however, maintained its 2.9% gross domestic product growth rate for Ghana in 2024 in the same report, with anticipation of further growth in the nation’s GDP to 4.4% in 2025 which is also a downward revision from the 5% GDP growth rate projected in the Bank’s April 2024 Africa Pulse Report.
The anticipated growth is despite subdued economic activity which is reflective of the dampening effects of fiscal consolidation and high inflation on domestic demand.
“Growth is expected to improve in Ghana in 2025, after weak growth in 2024, as ongoing fiscal revenue and expenditure reforms gradually bear fruit. However, current account deficits in industrial-commodity exporters are expected to widen further,” quipped the report.
The World Bank, however, pointed out that risks to Ghana’s GDP outlook are tilted to the downside with the downside risks including increasing global geopolitical tensions, especially an escalation of conflict in the Middle East; a further deterioration in regional political stability, and increased frequency and intensity of adverse weather events.
With regards to growth on the Continent, the report notes that GDP growth in Sub-Saharan Africa (SSA) is expected to pick up from 3.0% in 2023 to 3.5% in 2024, with projections of around 4.0% annually from 2025 to 2026.
Notably, the report anticipates acceleration in growth for the region’s largest economies, including Nigeria, South Africa, and Egypt, albeit at rates below historical averages.
Additionally, non-resource-rich economies are expected to sustain growth above historical averages, while resource-rich economies are anticipated to recover from slow growth in 2023, aided by stabilizing metal prices.
Norvanreports