World Bank Projects Ghana’s Growth At 1.6% In 2023
Ghana’s Gross Domestic Product (GDP) has been projected at 1.6% in 2023 by the World Bank in its Global Economic Prospects 2023 report.
The projection released in June, 2023 shows the Real GDP at market prices is down from the 3.2% growth estimated in 2022.
It also projects the country’s economic growth at 2.9% in 2024 before picking up at 4.8 in 2025.
The 2023 projection is despite the country’s ability to secure the approval of the International Monetary Fund (IMF)’s US$3 billion bailout last month.
In March, when the World Bank reviewed its forecast downward, it cited delay in securing an IMF programme as one of the reasons.
In that report, the World Bank said non-extractives growth is expected to remain slow, with agriculture affected by high input prices and a disease affecting cocoa trees. It said extractives growth is expected to be robust thanks to new gold mines and recovery in small-scale mining.
Meanwhile, it said poverty is expected to increase slightly, due to the cumulative effects of increases in electricity and water tariffs, rising food prices and an increase in VAT.
It cited increased financial sector vulnerabilities and the realization of contingent energy sector liabilities for the projection.
