Reforms, Private Sector Investment vital for Ghana’s long-term growth - World Bank

Ghana’s economy expanded by 5.7% in 2024 and sustained its momentum into the first quarter of 2025 with a growth rate of 5.3%, according to the World Bank’s 9th Economic Update for Ghana titled Addressing Labor Market Challenges and Opportunities in Ghana’s Economic Landscape.

The report attributes the robust performance to progress in debt restructuring, easing inflation, and strong trade, which boosted foreign reserves. However, it warns that fiscal challenges in 2024 eroded earlier stabilization gains, underscoring the urgent need for structural reforms to reinforce fiscal discipline and macroeconomic stability.

Growth is projected to slow to 3.9% in 2025 as fiscal adjustments weigh on domestic demand, inflation remains above target, and high interest rates persist. The Bank cautions that delays in debt restructuring, inflationary pressures, currency volatility, and climate-related agricultural losses could further strain the economy.

“Ghana’s success will depend on maintaining reform momentum and steadfast implementation,” said Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “Energy sector reform, private sector participation, and improved management of public finances are critical for long-term growth.”

The report also examines Ghana’s labor market, projecting a significant rise in the working-age population over the next decade. While this creates opportunities, it warns that without a comprehensive job creation strategy — particularly for youth — the economy risks underutilizing its human capital.

Lead Economist Kwabena Gyan Kwakye stressed the need to boost agricultural productivity, develop agro-processing value chains, and support job-to-job transitions to enhance economic resilience.

To stimulate private sector-led growth and job creation, the World Bank recommends:

• Investing in physical and human capital through infrastructure development and skills training.




• Improving the business environment by tackling regulatory bottlenecks and expanding access to finance.




• Mobilizing private capital into high-potential sectors such as manufacturing, textiles, electronics, and chemicals.

The Bank urges Ghana to strike a balance between short-term stabilization and long-term reforms to achieve sustainable economic transformation, stronger labor markets, and resilience against external shocks.