AfDB forecasts Ghana’s growth to slow to 4.5% in 2025
The African Development Bank (AfDB) projects Ghana’s economic growth will slow to 4.5 percent in 2025, down from 5.7 percent in 2024, according to its 2025 Economic Outlook. This forecast is slightly above AfDB’s earlier estimate of 4.3 percent and higher than predictions from the International Monetary Fund and World Bank, which expect 4.1 percent and 3.9 percent growth respectively.
The slowdown is linked to reduced fiscal consolidation momentum, higher interest rates, and mining sector activity. Despite this, the economy is expected to grow at a steady pace.
AfDB expects Ghana’s fiscal deficit to narrow to 3.5 percent of GDP in 2025 and 3.0 percent in 2026, supported by ongoing fiscal reforms and stricter spending controls. Public debt is forecast to fall to 66.4 percent of GDP in 2025 thanks to debt restructuring and improved tax collection.
The current account balance is predicted to improve to 2.6 percent of GDP in 2025, driven by increased oil and gold exports.
Risks to the outlook include climate change, possible policy reversals, and the impact of U.S. tariff hikes. AfDB warns that sticking to fiscal discipline is critical to managing these challenges.
Ghana’s 2024 growth was driven mainly by the services sector, contributing 44 percent, led by information and communication. Industry contributed 40 percent, with mining and construction boosting growth. Agriculture accounted for 10 percent, hurt by poor weather conditions.
Growth was supported by strong external demand and higher investment.
