- The World Bank offers a more optimistic outlook for Ghana's economy than the government's projection.
- The World Bank anticipates a marginal growth of 2.9% for 2024, slightly higher than the government's estimate of 2.8%.
- Overall, the World Bank offers a cautiously optimistic outlook for Ghana's economy.
The World Bank offers a more optimistic outlook for Ghana’s economy than the government’s projection. They forecast a 5.0% growth rate by 2026, exceeding the government’s target of over 3.0% in 2025. However, this hinges on overcoming some key hurdles.
2024 Growth: Potential and Risks
The World Bank anticipates a marginal growth of 2.9% for 2024, slightly higher than the government’s estimate of 2.8%. However, Dr. Andrew Dabalen, World Bank Chief Economist for Africa, cautions that factors like high debt and inflation could impact this. He highlights the potential for the Bank of Ghana to raise interest rates to combat inflation, which may dampen consumer spending and investment.
Reasons for Optimism
Despite these challenges, Dr. Dabalen sees positive signs. He points to a gradual slowdown in inflation and the potential for a swift agreement with international creditors, both of which could boost 2024 growth. Additionally, a debt restructuring deal could free up resources for government investments that spur economic activity.
Sustaining Recovery: Key Actions
The World Bank emphasizes the crucial role of continued reforms in sustaining Ghana’s recovery. Dr. Dabalen stresses the importance of:
- Maintaining fiscal discipline and debt transparency
- Upholding the effects of monetary tightening for economic stability
- Avoiding policy slippages, especially in an election year
Threats on the Horizon
The World Bank identifies the performance of developed economies as a major threat to Ghana’s economic recovery. A slowdown in those economies could negatively impact Ghana’s export earnings and foreign investment.
Overall, the World Bank offers a cautiously optimistic outlook for Ghana’s economy. While challenges remain, addressing them through continued reforms and responsible economic management can pave the way for a more robust recovery.
