Ghana’s economic outlook for 2025 has been slightly downgraded by the World Bank, with the institution forecasting a 3.9% Gross Domestic Product (GDP) growth—lower than both the government’s projection of 4.4% and the World Bank’s earlier forecast of 4.3%.
The updated projection is contained in the April 2025 edition of the Africa Pulse Report, where the Bretton Woods institution also anticipates modest improvements in the country’s economic performance over the next two years, projecting a growth rate of 4.6% in 2026 and 4.8% in 2027.
According to the World Bank, weather-related uncertainties remain a major concern, especially as they affect key export commodities such as cocoa in both Ghana and neighbouring Côte d’Ivoire. These climate disruptions have also had ripple effects on global cocoa stockpiles and pricing.
The report noted:“On average, the response to extreme weather events such as droughts and floods has diverted up to 9.0% of African governments’ budgets and rendered losses of 2.0% to 5.0% of economic activity.”
Despite the external challenges, Ghana is beginning to show signs of economic rebound. The World Bank highlighted renewed optimism among businesses and improvements in sectors like manufacturing and services during the early months of 2025.
“High-frequency indicators point to activity in manufacturing and services improving across countries in the region at the start of 2025. Business sentiment continues to expand in some countries (Kenya, Nigeria, and Zambia), while in others it has bounced back from contraction (Ghana and Mozambique) or remains subdued (South Africa and Uganda),” the report noted.
Specifically, Ghana’s Purchasing Managers Index (PMI) rose from 47.9 in January to 50.6 in March 2025, indicating a return to growth territory. The World Bank attributes this recovery to improved demand conditions, fewer supply chain disruptions, and renewed business momentum following the December 2024 presidential elections.
Elsewhere, Sub-Saharan Africa’s overall economic growth is projected to edge up slightly from 3.3% in 2024 to 3.5% in 2025, with further acceleration expected to reach 4.3% in 2026 and 2027. However, the region’s growth continues to be weighed down by sluggish performances in some of its largest economies—namely Angola, Nigeria, and South Africa.
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