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 momentum continued into the first quarter of 2025 at 5.3%, supported by debt restructuring progress, easing inflation, strong reserves, and robust trade performance.
However, the report cautions that fiscal setbacks in 2024 undermined earlier stabilisation gains, stressing the urgent need for structural reforms to reinforce fiscal discipline and macroeconomic stability.
Growth Outlook and Risks
The World Bank projects GDP growth to slow to 3.9% in 2025 due to fiscal adjustments, persistent inflation above target, and high interest rates. Growth is expected to gradually rebound to 5% over the medium term.
Risks that could disrupt this outlook include delays in external debt restructuring, fiscal consolidation challenges, and global shocks from geopolitical tensions and commodity price fluctuations. Domestically, Ghana also faces threats from inflationary pressures, exchange rate volatility, losses from state-owned enterprises, and climate-related agricultural setbacks.
The report further stresses that election-related spending must be carefully managed to preserve fiscal health.
World Bank Calls for Reforms
“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.
He emphasized the urgency of energy sector reforms, including private sector participation, to improve management effectiveness and revenue collection.
The Bank also recommended reforms to:
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Strengthen public financial management.
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Stabilise inflation and the exchange rate.
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Accelerate energy sector restructuring.
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Support private-sector-led growth and close infrastructure gaps.
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Advance digital transformation and address risks in the cocoa and energy sectors.
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Build human capital through skills development.
Job Creation and Human Capital Development
With Ghana’s working-age population projected to expand significantly over the next decade, the World Bank highlights the importance of creating productive jobs to harness the demographic dividend.
“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.”
Policy Priorities for Sustainable Growth
The report identifies three main policy priorities for Ghana’s long-term growth:
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Building Physical and Human Capital – investments in irrigation, transport, energy, and education to boost productivity and workforce readiness.
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Improving the Enabling Environment – addressing regulatory bottlenecks such as land registry inefficiencies, insolvency issues, and limited financing access.
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Mobilising Private Capital – expanding financial access, 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 strengthen fiscal discipline, enhance productivity, and create jobs for its rapidly expanding labour force.
