Ghana’s Economy Outpaces Peers but Faces Crucial Reform Test, Says World Bank

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Ghana’s economy defied global headwinds to grow 5.7% in 2024 and 5.3% in early 2025, outperforming regional peers through resilient trade and falling inflation, the World Bank reports. Yet fiscal pressures resurfaced last year, threatening hard-won stability gains.

In its latest Economic Update, the Bank warns growth will slow to 3.9% in 2025 as austerity bites, urging aggressive reforms to lock in progress and harness a youth demographic boom.

“Ghana’s success hinges on maintaining reform momentum,” stressed Robert Taliercio, World Bank Director for Ghana. He flagged energy sector overhaul and tighter fiscal discipline as urgent priorities, noting inflation remains stubbornly above single-digit targets. Risks loom large: delayed debt restructuring, climate-hit farm output, and election-year spending could unravel progress. Without action, state-owned enterprises and currency volatility may further strain public finances.

The report spotlights a critical window to transform Ghana’s labor market. With its working-age population surging, the country must urgently create quality jobs. Economist Kwabena Gyan Kwakye emphasized youth transitions: “Skills for a modern economy are non-negotiable to capture the demographic dividend.” Agriculture offers low-hanging fruit boosting productivity through agro-processing chains while manufacturing sectors like textiles and electronics need regulatory reforms to compete globally.

Three pillars anchor the Bank’s prescription:

Upgrading infrastructure and skills: Public-private partnerships for roads, energy, and irrigation, plus education overhaul to match market needs

Unlocking private investment: Fixing land registries, insolvency frameworks, and credit access to spur entrepreneurship

Business climate surgery: Removing trade barriers and bureaucratic bottlenecks choking enterprise growth

You see the tension: bright spots like rising reserves and a debt-restructuring tailwind versus persistent inflation and oil revenue shortfalls. If Ghana masters this balancing act, the Bank sees growth rebounding to 5% by 2027. But as elections approach, the real test is whether political will can outlast the campaign trail.

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