The World Bank is projecting a 2.7% expansion of the Ghanaian economy in 2023, lower than Sub-Saharan Africa average of 3.6%, its January 2023 Global Economic Prospects report has revealed.

It is however expecting the economy to grow by 3.5% in 2024, same as it projected for 2022.

The World Bank said the Ghanaian economy has been struggling with various setbacks, including rising public debt, elevated inflation (50.3% in November 2022) and a depreciating currency (38.8% in 2022), a reason it is seeking for an International Monetary Fund-support programme. This it said affected private sector growth in 2022 and will continue this year.

Again, rising input costs, on the back of high fuel and raw material prices impacted negatively on the private sector in 2022. Indeed, the economy slowdown in the third quarter of last year, growing by 2.9%, according to the Ghana Statistical Service.

“New orders and output have been trending down for many months. Rising input costs, on the back of high fuel and raw material prices, compelled businesses to cut workers for the first time in about a year”, it explained.

Therefore, it is not surprising that the government announced a growth rate target of 2.8% for this year.

Growth rate of 60% of countries in SSA revised downwards

Meanwhile, the World Bank has announced a downward revision for growth in Sub Sub-Saharan (SSA) for almost 60% of countries including Ghana.

It said this growth slowdown represents a formidable challenge for economic development in the region.

“Growth in SSA is expected at 3.6% in 2023 and 3.9% in 2024. Compared to the June [2022] forecast, growth was revised down for almost 60% of countries, including downward revisions for over 70% of metal exporters which are expected to be affected by the further easing of global metal prices. Even as cost of living pressures are anticipated to moderate, the negative impact of persistent poverty and food insecurity on growth, amplified by other vulnerabilities, such as unfavorable weather, high debt, policy uncertainty, and violence and conflict are anticipated to keep the pace of recoveries subdued in many countries”

Senegal is expected to be the fastest-growing economy in Sub Saharan Africa in 2023, with a growth rate target of 7.1%.

10 countries in SSA with high growth rates

Economy slows down in quarter 3, 2022 – GSS

Ghana’s economy grew at the slowest pace in two years in the third quarter of 2021, data from the Ghana Statistical Service (GSS) has revealed.

According to the GSS, the country’s economy expanded at 2.9% in the third quarter of 2022.

This is lower than the 4.7% Gross Domestic Product (GDP) recorded in the second quarter of 2022.