Ghana’s economy showed strong resilience in 2024, recording 5.7% growth despite global and domestic challenges, according to the World Bank’s 9th Economic Update titled Addressing Labour Market Challenges and Opportunities in Ghana’s Economic Landscape.
Growth continued in the first quarter of 2025 at 5.3%, supported by progress in debt restructuring, easing inflation, strong reserves, and robust trade performance.
However, the report warns that fiscal setbacks in 2024 undermined earlier stabilisation gains, highlighting the urgent need for structural reforms to reinforce fiscal discipline and macroeconomic stability.
GDP growth is projected to slow to 3.9% in 2025 due to fiscal adjustments, persistent inflation above target, and high interest rates, before gradually rebounding to 5% over the medium term.
Significant risks could disrupt this outlook, including delays in external debt restructuring, fiscal consolidation challenges, and external shocks from geopolitical tensions and commodity price swings.
Domestically, inflationary pressures, exchange rate volatility, losses from state-owned enterprises, and climate-related agricultural setbacks also pose threats. The report stresses that managing election-related spending in future polls will be key to sustaining fiscal health.
“Ghana’s success will depend on maintaining reform momentum and steadfast implementation,” said Robert Taliercio, World Bank Division Director for Ghana, Liberia, and Sierra Leone.
“Energy sector reform, including private sector participation, is urgent to improve management effectiveness and revenue collection.”
The Bank calls for reforms to strengthen public financial management, stabilise inflation and the exchange rate, and accelerate energy sector restructuring.
It also urges measures to support private-sector-led growth, close infrastructure gaps, advance digital transformation, address energy and cocoa sector risks, and build human capital.
With Ghana’s working-age population set to grow sharply over the next decade, the report stresses the importance of creating productive jobs to harness the demographic dividend.
This requires a coordinated strategy for job creation, skills development, and structural transformation, with particular focus on youth entering the workforce.
“A key focus should be on youth and their transition from school to work, ensuring they have the skills needed for a modern economy,” said Kwabena Gyan Kwakye, lead author of the report.
“Agriculture remains a key sector for productivity gains through agro-processing value chains and out-grower schemes.”
The report identifies three main policy priorities:
- Building Physical and Human Capital through infrastructure investments in irrigation, transport, and energy, coupled with education quality improvements and workforce skills development.
- Improving the Enabling Environment by removing regulatory and structural barriers such as land registry inefficiencies, insolvencies, and limited access to finance.
- Mobilising Private Capital by increasing access to finance, encouraging entrepreneurship, and reducing political and investment risks to attract long-term partnerships.
The World Bank concludes that Ghana’s path to sustainable growth lies in deep reforms that boost productivity, strengthen fiscal discipline, and create jobs for its expanding labour force.
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