World Bank revises Ghana’s 2026 growth forecast upwards to 4.8%
The World Bank has revised Ghana’s economic growth forecast for 2026 upward to 4.8 per cent from the 4.6 per cent projected in January this year.
The revised outlook, contained in the World Bank’s June 2026 Global Economic Prospects report, represents an increase of 0.2 percentage point and reflects continued confidence in Ghana’s economic recovery despite prevailing global uncertainties.
Although the latest projection is below the 6.0 per cent growth recorded in 2025, the World Bank said the moderation reflects Ghana’s transition from a strong post-crisis rebound to a more sustainable medium-term growth path.
The report projects Ghana’s economy to grow by 4.9 per cent in 2027 before rising to 5.0 per cent in 2028.
Ghana’s projected growth for 2026 is expected to exceed the Sub-Saharan Africa average of 4.0 per cent, underscoring the country’s relatively stronger economic performance within the region.
For Sub-Saharan Africa, the World Bank forecasts growth to slow to 4.0 per cent in 2026 before improving to an average of 4.4 per cent in 2027 and 2028.
According to the report, the regional growth outlook has been revised downward by 0.3 percentage point since January, mainly due to the anticipated economic impact of the ongoing conflict in the Middle East.
It said the adverse effects of the conflict would partly be offset by structural reforms and recent trade agreements that continue to support investment and export growth across the region.
“The growth forecast for 2026 has been revised down by 0.3 percentage point since January, with the negative impact of the conflict in the Middle East expected to outweigh existing growth drivers, including structural reforms and recent trade agreements that support investment and exports,” the report stated.
The World Bank said its projections were based on the assumption that geopolitical tensions would ease in the near term and that the security situation across the region would improve.
It projected real per capita Gross Domestic Product growth in Sub-Saharan Africa to remain at 1.6 per cent in 2026 before rising to an average of 2.0 per cent in 2027 and 2028.
Despite the expected improvement, the report cautioned that the pace of growth would remain inadequate to significantly reduce extreme poverty across the region.
It also warned that employment creation would continue to lag behind labour force growth, with Sub-Saharan Africa expected to have the world’s fastest-growing workforce by 2030.
The report stressed the need for sustained structural reforms and policies that promote private sector investment, productivity and job creation to support stronger and more inclusive economic growth.
It said governments across the region must continue implementing reforms to strengthen macroeconomic stability, improve the business environment and enhance resilience against external shocks if they are to sustain growth and accelerate poverty reduction.
The World Bank noted that while economic prospects for several African economies were improving, downside risks remained, including geopolitical tensions, climate-related shocks, debt vulnerabilities and weaker-than-expected global demand.
It therefore urged policymakers to remain committed to fiscal consolidation, investment in productive sectors and reforms that encourage innovation, competitiveness and sustainable economic transformation.
The report said sustained implementation of these measures would help countries such as Ghana consolidate recent gains and build more resilient economies capable of delivering broad-based and inclusive growth over the medium term.
BY KINGSLEY ASARE
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