World Bank hails Ghana’s private sector recovery
The World Bank has lauded Ghana’s improving business environment, noting that the country’s private sector is showing solid signs of recovery after years of economic turbulence.
According to the Bank’s October 2025 Africa Pulse Report, Ghana’s Purchasing Managers’ Index (PMI), a key barometer of private sector health, rose from 50.2 in July to 50.8 in August, signalling continued expansion in business activity.
A PMI reading above 50 indicates growth, while a figure below 50 reflects contraction. The latest data therefore points to sustained momentum in Ghana’s private sector performance, driven by stronger new orders and ongoing job creation.
The World Bank noted that Ghanaian firms are beginning to regain confidence, a reflection of improving macroeconomic conditions following the severe economic downturn of 2022, when the country battled soaring inflation, currency depreciation and debt distress that led to an IMF-supported reform programme.
“Business conditions in Ghana improved as the country’s PMI increased slightly from 50.2 in July to 50.8 in August. New orders and sustained job creation drove this increase. Unusually poor weather conditions led to a modest decline in output, although companies remained optimistic about future business,” the World Bank report stated.
The report highlighted that, despite temporary setbacks from poor weather affecting output in some sectors, business sentiment remains upbeat.
Many firms are reporting increased new business and sales orders, bolstered by reduced input costs, lower output prices and a stronger Ghanaian cedi that has helped to ease import costs and inflationary pressures.
One major factor underpinning the improved outlook is Ghana’s sharp decline in inflation, which fell to 9.4 per cent in September 2025, its lowest level in four years, down from 23.8 per cent in December 2024.
The World Bank attributes this disinflation to tight monetary policy, improved food supplies and the cedi’s appreciation, which have collectively stabilised prices and boosted consumer confidence.
The Bank said the nation’s improving fiscal discipline, alongside recovering investor confidence and strong export earnings from cocoa and gold, are helping to consolidate the gains made under the ongoing IMF programme.
The uptick in PMI therefore reflects a gradual stabilisation of the Ghanaian economy, supported by effective policy coordination between the government and the Bank of Ghana.
For many Ghanaians and business owners, this signals a slow but steady turnaround, a possible beginning of a more resilient and competitive private sector after years of economic strain.
If the current trajectory continues, the World Bank says 2025 could mark a decisive turning point in Ghana’s path towards a more robust and business-friendly economy.
