The World Bank is affirming Ghana’s Gross Domestic Product (GDP) growth for 2024 at 2.9%.

According to its June 2024 Global Economic Prospects, economic activity in the country remained subdued, reflecting the dampening effects of fiscal consolidation and high inflation on domestic demand.

However, growth is expected to improve in 2025 to 4.4%.

This is because ongoing fiscal revenue and expenditure reforms gradually bear fruit.

“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.”

Nonetheless, it pointed out that risks to the outlook are tilted to the downside. Downside risks include increasing global geopolitical tensions, especially an escalation of conflict in the Middle East; a further deterioration in regional political stability; increased frequency and intensity of adverse weather events; among others.

Growth in SSA to hit 3.5% in 2024

Meanwhile, growth in Sub Saharan Africa is projected to pick up from 3.0% in 2023 to 3.5% in 2024 and about 4.0% annually in 2025-26.

“Growth in the region’s three largest economies [Nigeria, South Africa, Egypt] is expected to accelerate from 1.8% in 2023 to 2.4% in 2024 and an average of 2.6% in 2025-26. However, this is markedly below the region’s average growth, and historical trends.”

It added that non-resource-rich economies are forecast to maintain growth above their historical average rate, while resource-rich economies recover from their slow growth in 2023, as metal prices stabilise.