Ghana’s economic rebound has hit a mild snag as the World Bank trims its 2025 GDP growth projection to 3.9%, down from a previous 4.3% and below the government’s 4.4% target. The revision, detailed in the April 2025 edition of the Africa’s Pulse report, underscores the persistent economic challenges facing the country, including inflation and external vulnerabilities.
While the downgrade reflects current headwinds, the World Bank maintains a cautiously optimistic outlook, projecting Ghana’s growth to bounce back to 4.6% in 2026 and 4.8% in 2027, spurred by renewed business momentum and investor confidence.
The report also sheds light on climate change as a growing economic threat, particularly for cocoa-dependent economies like Ghana. Unpredictable weather patterns have disrupted production, while floods and droughts are reportedly wiping out up to 9% of national budgets across Africa.
Despite the lowered forecast, green shoots of recovery are visible. Ghana’s Purchasing Managers Index (PMI) climbed from 47.9 in January to 50.6 in March 2025, signaling renewed demand and improved business activity following the December 2024 elections.
Regionally, Sub-Saharan Africa’s growth is expected to tick up from 3.3% in 2024 to 3.5% in 2025. Excluding struggling giants Nigeria, South Africa, and Angola, the region’s growth outlook brightens considerably—pegged at 4.6% in 2025 and 5.7% by 2027.
Still, the World Bank cautions that global policy shifts, climate shocks, and fiscal pressures remain potent risks that could derail fragile progress.
