Ghana’s Economy Projected To Grow By 4.5% In 2025 – AfDB

Ghana’s Economy Projected To Grow By 4.5% In 2025 – AfD

The African Development Bank (AfDB) projects Ghana’s economy will grow by 4.5% in 2025, according to its latest African Economic Outlook report released during the AfDB Annual Meetings in Abidjan, Côte d’Ivoire.

The anticipated growth is expected to be driven by strong performance in the mining sector, continued fiscal consolidation efforts, and elevated interest rates.

The African Development Bank (AfDB) projects Ghana’s economy will expand by 4.5% in 2025, according to its latest African Economic Outlook report released during the AfDB Annual Meetings in Abidjan, Côte d’Ivoire.

The projected growth is expected to be driven by a strong performance in the mining sector, ongoing fiscal consolidation, and elevated interest rates.

The report provides an in-depth analysis of key economic indicators across member countries—examining GDP growth, inflation, fiscal balance, debt sustainability, and external accounts—while also highlighting potential risks to economic stability across West Africa.

Looking ahead, the AfDB forecasts that Ghana’s GDP growth will rise further to 4.8% in 2026, supported by improving macroeconomic fundamentals.

The African Development Bank (AfDB) projects that Ghana’s economy will grow by 4.5% in 2025, driven by strong mining sector performance, continued fiscal consolidation, and high interest rates. The projection was detailed in the AfDB’s latest African Economic Outlook report, released during its Annual Meetings in Abidjan, Côte d’Ivoire.

Looking further ahead, the AfDB expects Ghana’s GDP growth to rise to 4.8% in 2026, underpinned by stronger macroeconomic fundamentals. The report also examines key economic indicators across member countries, including inflation, debt sustainability, fiscal balance, and external accounts, while highlighting risks to regional stability—particularly in West Africa.

However, Ghana’s government has offered a more conservative outlook. In the 2025 national budget, Finance Minister Dr. Ato Forson pegged overall GDP growth at 4.0%, with non-oil GDP growth targeted at 4.8%.

The World Bank, in its April 2025 Africa’s Pulse report, forecasts 3.9% growth for Ghana in 2025, climbing to 4.6% in 2026 and 4.8% in 2027. It warns that climate variability—especially its impact on cocoa yields and prices in Ghana and Côte d’Ivoire—remains a significant downside risk to these projections.

Similarly, the International Monetary Fund (IMF), in its Regional Economic Outlook released during the Spring Meetings in Washington D.C., revised Ghana’s 2025 GDP growth forecast to 4.0%, aligning with government estimates. The IMF also projects 4.8% growth in 2026.

On inflation, the AfDB is notably less optimistic than Ghanaian authorities. While the Ministry of Finance projects end-2025 inflation at 11.9%, and the Bank of Ghana forecasts 12%, the AfDB estimates a higher rate of 15.4%—still a decline from the April 2025 inflation rate of 21%, but well above the official targets.

The IMF adopts an even more cautious stance, forecasting inflation at 17.5% in 2025, suggesting the government may fall short of its inflation reduction goals.

Speaking at the 2025 Annual African Development Bank (AfDB) Conference in Abidjan, President Mahama stated that Ghana has so far cleared 70% of its debt and is implementing measures to achieve a Debt-to-GDP ratio of 55% by the end of 2025…

A Report By Abdul-Hanan Adam… pic.twitter.com/8Kr0hKmST3

— GHOne TV (@ghonetv) May 27, 2025

Source: Citinews