World Bank Projects Economic Slowdown

Dr. Mahammed Amin Adam, Finance Minister

 

The April 2024 World Bank Africa Pulse Report has forecast a slowdown in Ghana’s economic growth for this year even though managers of the economy expect otherwise.

The report has suggested about 2.0% Gross Domestic Product (GDP) growth for Ghana this year, lower than and nearly 5.0% what it forecasts for 2025.

Ghana is also billed to contribute 0.10% to the regional GDP growth.

Ghana’s economy recorded 2.9% GDP in 2023 slower than the 3.1% recorded in the previous year and stronger than the revised 1.5% by the Finance Ministry.

Information released by the Ghana Statistical Service indicated that the Industry contracted by 1.2%, compared to 0.6% GDP in 2022 in spite of being the biggest.

The 10.9% and 9.9% contraction of the Electricity and Construction sub-sectors in 2023 caused the decline in the GDP of Industry. Mining and Quarrying (2.5%) was the only subsector that recorded a growth rate.

The report further indicated that for 2024, growth in Sub-Saharan Africa is expected to accelerate to 3.4 percent and further to an average rate of 3.9% in 2025-2026, and accelerate in nearly 70% of Sub-Saharan African countries (32 countries). However, growth rates are below their average growth in 2000–19 in about half of them (17 countries).

By Samuel Boadi