Ghana’s economic growth is expected to slow in 2026 as rising global uncertainties, higher energy costs, and tighter financial conditions weigh on economies across Sub-Saharan Africa, according to the World Bank.
In its June 2026 Global Economic Prospects report, the World Bank projected that Ghana’s economy will grow by 4.8 percent in 2026, down from an estimated 6.0 percent in 2025. Growth is expected to recover only modestly to 4.9 percent in 2027 and 5.0 percent in 2028.
The revised forecast comes as the World Bank lowered its outlook for Sub-Saharan Africa, warning that the ongoing conflict in the Middle East, rising energy prices, renewed inflationary pressures, and tighter global financing conditions are creating fresh challenges for the region.
Regional growth is now expected to slow to 4.0 percent in 2026 from 4.1 percent in 2025, a downward revision from the Bank’s earlier projections.
Despite the slowdown, the World Bank noted that economic activity across the region strengthened in 2025, supported by strong commodity prices, improving agricultural output, easing inflation, and reforms aimed at boosting investor confidence.
However, the outlook has become more uncertain this year.
According to the report, higher oil prices linked to tensions in the Middle East are increasing fuel, transport, and fertiliser costs across much of Africa. While oil-exporting countries such as Nigeria and Angola could benefit from stronger energy revenues, countries that rely on imported fuel, including Ghana, are expected to face greater economic pressure.
The Bank warned that these higher costs could fuel inflation, increase production expenses, and strain government finances at a time when many countries already have limited fiscal space.
For Ghana, the challenge will be maintaining economic stability while protecting households from rising living costs.
The report highlighted concerns about temporary fuel subsidy measures being adopted in some countries, including Ghana. While such interventions may provide short-term relief, the World Bank cautioned that prolonged subsidies could widen budget deficits, increase borrowing, and divert resources away from more targeted support for vulnerable households.
The Bank also expects borrowing costs to remain elevated as central banks across the region continue to battle inflation. Reduced access to concessional financing and declining development assistance could further complicate efforts to manage public finances.
Despite these headwinds, the World Bank believes Ghana’s recovery remains on track, provided authorities maintain fiscal discipline, support private sector growth, and continue implementing reforms that encourage investment and job creation.
The report stressed that Ghana’s economic prospects will largely depend on its ability to manage fuel and food price pressures, strengthen domestic revenue mobilisation, and translate macroeconomic stability into tangible opportunities for businesses and workers.
Across Africa, the World Bank expects growth prospects to vary significantly. While some countries are benefiting from reforms and stronger commodity exports, others continue to struggle with structural constraints, debt challenges, and weaker external demand.
The report also identified positive developments that could support long-term growth, including deeper regional trade under the African Continental Free Trade Area (AfCFTA), the extension of the African Growth and Opportunity Act by the United States, and China’s decision to remove tariffs on African imports.
Even so, the World Bank cautioned that growth alone will not be enough to significantly reduce poverty across the region. Job creation continues to lag behind population growth, while food insecurity and humanitarian challenges remain major concerns in several countries.
For Ghana, the 4.8 percent growth forecast serves as both a sign of resilience and a warning. While the economy is expected to continue expanding, it remains vulnerable to external shocks and rising global uncertainties.
The coming years will test the country’s ability to sustain stability, create jobs, attract investment, and build a stronger foundation for long-term economic growth.
Source: Norvanreport
