The World Bank’s latest Africa Economic Update report has projected Ghana’s economic growth at 4.8%, with inflation expected to reach 9% by the end of the year.
The 4.8% growth projection aligns with the government’s estimate as outlined in the 2026 Budget.
The report, released on April 8, further noted that growth in Sub-Saharan Africa is projected at 4.1% in 2026, unchanged from 2025, although downside risks are increasing.
According to the World Bank, the region’s recovery from successive global shocks is losing momentum, with growth projections revised downward by 0.3 percentage points from the October 2025 forecast.
It stated that “domestic demand continues to support growth, driven by private consumption and investment, alongside relatively accommodative monetary policy and improving external conditions.”
It added that a weaker U.S. dollar has helped ease inflationary pressures and boost household incomes across the region.
The report also indicated that high prices for commodities such as cocoa and coffee supported revenues in 2025 and are expected to strengthen fiscal and external positions in resource-rich countries.
However, the Bank cautioned that rising geopolitical tensions in the Middle East, high debt-service burdens, and structural challenges are weighing on growth and job creation.
It further noted that these risks have intensified following a sharp escalation in the Middle East conflict, including attacks on energy facilities and disruptions to global shipping routes.
Based on the Bank’s forecast, some financial analysts believe inflation could rise in the coming months before easing to meet the year-end target. Others also point to developments in the Middle East, which have contributed to spikes in petroleum prices.
By Ebenezer K. Amponsah