4.4% growth forecast driven by easing inflation, strong services sector — Analyst
Economic analyst Emmanuel Boateng has clarified that the World Bank’s upward revision of Ghana’s economic growth projection to 4.4 per cent for 2025 is driven by several key factors, including easing inflation, renewed investor confidence during the post-recovery period, and strong performance in the services sector.
According to Mr Boateng, the positive outlook marks a significant improvement on previous forecasts, reflecting growing macroeconomic stability and sectoral strengths.
Speaking on market trends during the Business Breakfast show on Zed 101.9 FM, Mr Boateng said Ghana’s own growth forecast was recently raised from a range of 3.8 per cent to 4.3 per cent, attributed largely to the government’s fiscal consolidation efforts combined with favourable external economic conditions.
He emphasised that these developments point towards stronger economic momentum, supported by both domestic policy actions and improving global dynamics.
“According to the World Bank, this growth is particularly stimulated by easing inflation, renewed confidence in our post-recovery phase, and other key factors. Additionally, strong services sector performance is part of the reason why the growth forecast has been updated. This outlook aligns closely with Ghana’s own projection of expected growth,” he said.
Mr Boateng added that the easing inflation trend has been notable across Africa, where double-digit inflation rates have reduced from 23 countries to just 10, signalling broad-based progress in price stability.
Ghana’s inflation and exchange rate stability have therefore contributed significantly to the revised growth outlook.
Several sectors have been pinpointed as major contributors to Ghana’s economic expansion. Agriculture continues to play a pivotal role, alongside a growing financial services sector and increasing activity in the information, communications and technology (ICT) industry.
These sectors are helping diversify the economy and reduce dependence on volatile commodity exports such as oil, gold and cocoa, which remain vulnerable to global price fluctuations.
Mr Boateng also highlighted the importance of government policy reforms in sustaining this positive trajectory. He cautioned that prudent fiscal management is critical, urging the government to prioritise spending on productive investments rather than consumption.
The economic analyst also stressed that loans and external financing should be directed towards sectors that stimulate long-term growth and economic resilience, rather than short-term consumption needs.
