The World Bank has downgraded Ghana’s projected GDP growth for 2025 to 3.9%, below the government’s target of 4.4%. This adjustment, outlined in the April 2025 edition of the Africa’s Pulse report, represents a slight decline from the earlier forecast of 4.3%. The revision is attributed to ongoing inflationary pressures and external economic challenges.
Despite this reduction, the World Bank maintains a cautiously optimistic outlook for Ghana’s medium-term future, forecasting a growth rebound to 4.6% in 2026 and 4.8% in 2027. The report also pointed to climate-related challenges, such as unpredictable weather patterns that have disrupted cocoa production in both Ghana and Côte d’Ivoire—major global cocoa producers.
It noted that climate-related events like floods and droughts are straining national budgets across Africa, reducing them by up to 9% and causing economic losses of between 2% and 5%.
On a brighter note, Ghana is among a few African countries showing early signs of economic recovery in 2025. Key indicators, especially the Purchasing Managers Index (PMI), show rising business activity.
Ghana’s PMI climbed from 47.9 in January to 50.6 in March, signaling increased demand, fewer supply chain disruptions, and renewed investor confidence following the December 2024 elections. The World Bank also noted improved business activity in both Mozambique and Ghana in February 2025, largely driven by higher demand and new business engagements.
Regionally, Sub-Saharan Africa is projected to see modest growth, increasing from 3.3% in 2024 to 3.5% in 2025, and accelerating to 4.3% by 2026–2027. However, overall progress is being held back by underperformance in Nigeria, South Africa, and Angola—the region’s three largest economies. When these are excluded, the rest of Sub-Saharan Africa is expected to grow by 4.6% in 2025 and 5.7% by 2027.
Nonetheless, the World Bank cautioned that ongoing global uncertainties, climate shocks, and fiscal pressures continue to threaten the region’s path to a stable and inclusive recovery.
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