The World Bank has in its June 2023 Global Economic Prospects Report maintained its 1.6% Gross Domestic Product (GDP) growth forecast for Ghana in 2023.
The forecast is far lower than the expected 3.2% for Sub-Saharan Africa.
The figure places Ghana in the 42nd position in Sub-Saharan Africa.
The report indicated that Ghana’s economy is projected to expand by 2.9% in 2024.
According to the report, the slowdown in the economy is due to the challenges facing the economy, as the Ghana government is undertaking an International Monetary Fund support programme.
“In Ghana, more timely data highlight the weakness of economic activity amid the deleterious global shocks and heightened macroeconomic instability”.
Meanwhile, five other African countries, Malawi (1.4%), Sudan (0.4%), South Africa (0.3%), South Sudan (-0.4%) and Equatorial Guinea (-3.7%) are expected to grow lower than Ghana in 2023.
In the report, the World Bank explained that its baseline projections remain subject to multiple downside risks amid uncertainty about developments in global commodity markets, the degree of additional global and domestic policy tightening needed to subdue persistent inflation, and the resilience of the world economy and global financial system to a prolonged period of tight monetary policies.
It said commodity prices may remain unusually volatile and vulnerable to further shocks if disruptions to the supply of major commodities worsen—for instance, due to intensifying geopolitical tensions or conflicts. Furthermore, global activity may decelerate faster than envisioned if the reopening of China’s economy fails to generate a durable recovery.