The World Bank is expecting Ghana’s growth rate to reach 5.0% by 2026.
This is coming after it projected a marginal 2.9% Gross Domestic Product (GDP) growth for 2024, higher than the estimated 2.8% by the government.
The government is also hoping to achieve more than a 3.0% growth rate in 2025.
The IMF in 2023 projected that Ghana will end the year 2024 with a 2.3% GDP growth.
In 2023, Ghana’s economy expanded by 2.9%, according to data released by Ghana Statistical Service.
Speaking to Joy Business from Washington DC, the World Bank Chief Economist for Africa, Dr. Andrew Dabalen, said the margin of growth for 2024 would be influenced by Ghana’s high levels of debt and inflation which will impact the level of growth.
He stressed that the development may result in the Bank of Ghana increasing the policy rate to check inflation, adding, that it will affect the level of consumption and investments.
Dr. Dabalen however maintained that even though the World Bank is projecting this level of growth for Ghana in 2024, there are strong indications that the country might even do better.
“This is because of the rate at which the inflation rate is slowing down though it is still high. We are also hoping that Ghana will reach a deal with its international creditors soon, and it will influence the growth numbers for 2024.
“The debt restructuring deal may also free up space for the government to invest in critical sectors that will aid growth,” the Chief Economist for Africa stated.
Outlook for 2026 and sustaining the recovery
The World Bank Chief Economist mentioned that the GDP growth projection will also be dependent on Ghana staying on the recovery path by implementing reforms that will aid its recovery.
On how to sustain the recovery, Dr. Dabalen said is important that Ghana stays on the reform path, maintains fiscal discipline and debt transparency.
He continued that the effect of the monetary tightening must be sustained to firmly stabilise the economy.
“We are also worried about policy slippages, especially in an election year, and therefore it’s important to maintain that discipline going forward to ensure that things don’t get out of hand”, he said.
He explained that the major threat to Ghana’s economic recovery is the performance of developed economies.
