Data from the World Bank’s June 2023 Global Economic Prospects Report indicates an estimated 1.6% Gross Domestic Product (GDP) growth forecast for Ghana in 2023.
This is far lower than the expected 3.2% estimation for countries in Sub-Saharan Africa but places Ghana in the 42nd position in Sub-Saharan Africa.
The forecast is the same as the 1.6% growth rate for Ghana in 2023 by the International Monetary Fund (IMF).
According to the report, Ghana’s economy is projected to expand by 2.9% in 2024.
The report stated that a slowdown of the economy was due to economic challenges, as the Ghana government gets an International Monetary Fund support programme.
“In Ghana, more timely data highlight the weakness of economic activity amid the deleterious global shocks and heightened macroeconomic instability”.
Five African countries, Malawi (1.4%), Sudan (0.4%), South Africa (0.3%), South Sudan (-0.4%), and Equatorial Guinea (-3.7%), are expected to grow lower than Ghana in 2023.
The World Bank said: “Baseline projections remain subject to multiple downside risks amid uncertainty about developments in global commodity markets, the degree of additional global and domestic policy tightening needed to subdue persistent inflation, and the resilience of the world economy and global financial system to a prolonged period of tight monetary policies”.
It also outlined that commodity prices may remain unusually volatile and vulnerable to further shocks if disruptions to the supply of major commodities worsen—for instance, due to intensifying geopolitical tensions or conflicts.
Furthermore, global activity may decelerate faster than envisioned if the reopening of China’s economy fails to generate a durable recovery.
Growth in Sub-Saharan Africa (SSA) is expected to slow from 3.7% in 2022 to 3.2% this year—a 0.4 percentage point downgrade from January forecasts—with a moderate improvement to 3.9% next year.
