The World Bank Group has identified Ghana’s current political stability as a critical window for the Mahama-led administration to implement bold economic reforms, following the governing party’s decisive parliamentary majority in the 2024 elections.

In its 9th Ghana Economic Update released in June, the Bank noted that the strong mandate provides renewed momentum for reforms focused on fiscal discipline, macroeconomic stability, and sustainable long-term growth.

However, the report cautioned that Ghana must brace for a slowdown in 2025 as fiscal consolidation measures take effect. The economy is projected to expand by 3.9 percent in 2025, compared to 5.7 percent in 2024. The deceleration reflects tighter fiscal adjustments, persistent inflation, and elevated interest rates.

The World Bank stressed that these corrective policies, though challenging in the short term, are necessary to restore stability and position Ghana for medium-term growth of around 5 percent.

Resilient Sectors and External Stability


Despite the expected slowdown, some sectors are projected to remain strong. Gold exports will continue to perform well, supported by favourable international prices, ensuring steady foreign exchange inflows.

The external sector is also expected to sustain a current account surplus, underpinned by robust remittances—estimated at over $4 billion annually—and steady foreign direct investment.

Inflation, meanwhile, is forecast to ease gradually as the Bank of Ghana maintains its tight monetary stance.

Fiscal Outlook and Debt Sustainability


On the fiscal side, the World Bank expressed optimism that Ghana’s strategy could deliver results if pursued consistently. The government is targeting a primary surplus of 1.5 percent of GDP in 2025 and beyond, a move expected to create fiscal space for pro-poor and growth-enhancing investments.

The report assessed Ghana’s debt as sustainable over the medium term, but warned that this depends on the successful completion of external debt restructuring and full implementation of fiscal consolidation. While the country remains at high risk of debt distress, recent agreements with official creditors mark notable progress.

Looking ahead, the government is expected to prioritise domestic borrowing while planning a cautious re-entry into international capital markets only in the medium term.