The World Bank projects that Ghana’s economy will grow by 3.9% in 2025.
This falls slightly below the government’s forecast of 4.4%. It also marks a revision from the Bank’s earlier projection of 4.3%, reflecting a more cautious outlook.
Persistent inflation and moderate momentum continue to shape this forecast. Despite the slowdown, the World Bank expects steady growth in the years ahead. It projects Ghana’s GDP will rise to 4.6% in 2026 and 4.8% in 2027.
However, the report raises concerns about climate-related challenges. Unpredictable weather continues to hurt cocoa harvests in Ghana and Côte d’Ivoire. These disruptions also affect global stockpiles. On average, extreme weather events force African governments to redirect up to 9% of their budgets. Such events also reduce economic activity by 2% to 5%.
Even so, Ghana showed signs of recovery in early 2025. The World Bank noted an improvement in business sentiment across the region. Manufacturing and services gained momentum in countries like Kenya, Nigeria, and Zambia. In Ghana and Mozambique, business activity rebounded after earlier declines.
Ghana’s Purchasing Managers Index (PMI) rose from 47.9 in January to 50.6 in March. This recovery was driven by stronger demand, fewer supply chain issues, and increased activity after the December 2024 elections.
Across Sub-Saharan Africa, the economy is expected to grow from 3.3% in 2024 to 3.5% in 2025. Growth could reach 4.3% by 2027. However, sluggish performance in Angola, Nigeria, and South Africa continues to hold the region back.
Excluding these three countries, the rest of the region could grow by 4.6% in 2025. Growth may further accelerate to 5.7% by 2027. Still, the World Bank warns that global policy uncertainty could pose serious risks to this outlook.
