World Bank Raises Ghana’s 2025 Growth Outlook to 4.3%, Signaling Stronger Economic Recovery

The World Bank has upgraded Ghana’s 2025 economic growth forecast to 4.3%, up from its earlier estimate of 3.9%, reflecting renewed optimism about the West African nation’s economic recovery. The revision was announced in the October 2025 edition of Africa’s Pulse Report, released in Washington, D.C., highlighting Ghana’s improved fiscal performance and resilience in key sectors.

The new projection is only slightly below the 4.4% growth target set by the Government of Ghana in its 2025 national budget. According to recent data, Ghana’s economy expanded by 6.3% in the second quarter of 2025, driven primarily by the services sector, which surged by 9.9% and contributed the largest share to the country’s Gross Domestic Product (GDP). This momentum underscores growing confidence in Ghana’s post-crisis recovery path.

Looking ahead, the World Bank forecasts that Ghana’s growth will continue to strengthen, reaching 4.6% in 2026 and 4.8% in 2027, suggesting a steady medium-term outlook. The Bank also revised its projection for Sub-Saharan Africa’s growth to 3.8% in 2025, up from 3.5% in 2024, pointing to easing inflation and a modest revival in investment across the region despite ongoing global challenges.

The Africa’s Pulse report highlighted significant progress in price stabilization across the continent, noting that the number of African countries experiencing double-digit inflation has dropped from 23 in October 2022 to 10 in July 2025. However, it cautioned that risks remain, including uncertain trade policies, reduced investor confidence, and shrinking access to external finance and aid, which could temper the region’s growth momentum.

For Ghana, inflation is expected to end 2025 at 15.4%, according to World Bank estimates, higher than the official rate of 9.4% recorded in September 2025, down from 21.5% a year earlier. While the Bank’s projection is more conservative, both the World Bank and the Bank of Ghana agree that inflation will continue to fall, with single-digit figures expected by 2026, marking a major step toward economic stability and sustainable growth.

source: citi newsroom