Ghana’s 2025 Growth Slashed to 3.9% by World Bank Amid Inflation and External Pressures
World Bank Revises Ghana's 2025 GDP Growth Downward, Citing Inflation, External Risks, and Climate Challenges
- The World Bank lowers Ghana’s 2025 GDP growth projection to 3.9%, down from 4.3%
- Persistent inflation and global vulnerabilities are cited as key reasons for the downgrade
- World Bank expects a recovery, projecting 4.6% growth in 2026 and 4.8% in 2027
The World Bank has revised its 2025 growth forecast for Ghana’s GDP to 3.9%, below the government’s target of 4.4%.
This updated figure, published in the April 2025 edition of the World Bank’s Africa’s Pulse report, marks a slight decrease from the previous estimate of 4.3%.
The reduction is primarily due to persistent inflationary pressures and ongoing vulnerabilities from external factors. Despite this downgrade, the World Bank remains cautiously optimistic about Ghana’s medium-term outlook, projecting a rebound to 4.6% growth in 2026 and 4.8% in 2027.
The report also highlighted climate risks, especially the impact of erratic weather on cocoa production in both Ghana and Côte d’Ivoire, two of the world’s top exporters. It warned that climate-related disruptions such as floods and droughts are eroding national budgets across Africa by up to 9%, causing economic setbacks between 2% and 5%.
On a more positive note, Ghana shows signs of recovery in 2025. High-frequency indicators like the Purchasing Managers Index (PMI) indicate a rise in business activity, with the PMI moving from 47.9 in January to 50.6 in March.
This growth is fueled by increased demand, reduced supply bottlenecks, and renewed investor confidence following the December 2024 presidential elections.
While Sub-Saharan Africa’s economic growth is expected to slightly improve from 3.3% in 2024 to 3.5% in 2025, growth outside of the region’s three largest economies—Nigeria, South Africa, and Angola—is projected to be stronger, with a forecasted 4.6% growth in 2025, rising to 5.7% by 2027.
However, the World Bank cautioned that risks such as global policy uncertainties, climate shocks, and fiscal constraints could hinder a robust and inclusive recovery across the continent.
