Kester Aburam Korankye (right), the reporter, speaking with Dr Nii Moi Thompson, Chairman of the NDPC, on the sidelines of the World Bank IMF Spring Meetings ongoing in Washington DC, USA
Kester Aburam Korankye (right), the reporter, speaking with Dr Nii Moi Thompson, Chairman of the NDPC, on the sidelines of the World Bank IMF Spring Meetings ongoing in Washington DC, USA

Ghana, a bright spot in global slowdown

Kester Aburam Korankye 2 minutes read

As the International Monetary Fund (IMF) warns of a global growth slowdown to 2.8 per cent in 2025 from its previous forecast of 3.3 per cent, Ghana stands out as a regional bright spot with a projected 4.8 per cent gross domestic product (GDP) expansion. 

This growth outpaces sub-Saharan Africa’s average of 3.8 per cent.

However, Ghana's recovery is deemed fragile, requiring a delicate balance between IMF-mandated austerity and mounting social pressures.

A report titled: "A Critical Juncture amid Policy Shifts", released yesterday in Washington DC, USA, on the sidelines of the 2025 Spring Meetings, highlights the challenges of navigating trade-offs between growth and inflation, rebuilding fiscal buffers and addressing structural imbalances exacerbated by geopolitical tensions, trade disruptions and policy uncertainty.  

GDP is the standard measure of the value added created through the production of goods and services in a country during a defined period.

It also measures the income earned from that production, or the total amount spent on final goods and services minus imports.

Debt, inflation

The IMF's latest $370 million disbursement under Ghana's $3 billion Extended Credit Facility programme underscores progress in fiscal reforms.

Despite this, inflation remains high at 22.4 per cent, driven by food prices and currency volatility.

Ghana's mining and oil sectors are driving growth, expanding by 7.1 per cent in 2024.

In contrast, the agricultural sector lags, growing at 2.8 per cent due to climate shocks and cocoa sector crises.

The World Bank urges Ghana to pair fiscal consolidation with structural reforms, including broadening the tax base and reducing energy subsidies.

The government aims to leverage the African Continental Free Trade Area (AfCFTA) to diversify exports and reduce reliance on traditional commodities.

Speaking to the projected GDP growth, the Chairman of the National Development Planning Commission, Dr Nii Moi Thompson, told the Daily Graphic on the sidelines of the ongoing Spring Meetings that while growth in GDP was good, the government would seek to factor in growth in job creation and wages to make development a three-dimensional approach.

“In the future, we want to approach development on three dimensions: GDP growth, growth in jobs, and wages,” he said.


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