World Bank forecasts slower GDP growth for Ghana in 2024; pegs growth rate at 2%
The April 2024 edition of the World Bank’s Africa Pulse Report has cast a shadow over Ghana’s economic prospects, forecasting a modest 2% Gross Domestic Product (GDP) growth for the country in the current year.
This is a downward revision from the 2.8% GDP growth rate earlier projected by the Bretton Wood Institution. Growth is, however, expected to pick up to 5% next year – 2025.
In a broader regional context, Ghana finds itself among 15 African nations expected to witness a growth slowdown this year. The country is expected to contribute a mere 0.10% to the overall regional GDP growth, underscoring the challenges it faces in aligning with Sub-Saharan Africa’s projected acceleration to 3.4% growth in 2024.
The World Bank report attributes the regional growth rebound to larger economies in the region, which, despite posting growth rates lower than those seen in the early 21st century, are driving the positive trajectory.
In 2024, growth is anticipated to accelerate in nearly 70% of Sub-Saharan African countries, with half of them (comprising 17 nations) still lagging behind their average growth rates from 2000-2019.
Ghana’s 2.9% GDP growth in 2023 outpaced the Finance Ministry’s revised estimate of 1.5% but still fell short of the 3.1% GDP growth rate recorded in 2022.
Data from the Ghana Statistical Service indicates that the Industry sector in 2023 contracted by 1.2%, compared to 0.6% GDP in 2022. It however remains the biggest size of the economy.
The 10.9% and 9.9% contraction of the Electricity and Construction subsectors in 2023 caused the decline in the GDP of Industry. Mining and Quarrying (2.5%) was the only subsector that recorded a growth rate.
As Ghana navigates economic headwinds, the World Bank’s projections serve as a timely reminder of the need for targeted policies and reforms to bolster resilience, stimulate growth, and align more closely with regional economic trends.
