The International Monetary Fund (IMF) has forecasted a 4.2% economic growth for Sub-Saharan Africa by 2025, suggesting a brighter outlook for Ghana.
This projection was detailed in the IMF’s October 2024 World Economic Outlook, released during the ongoing Annual Meetings in Washington, DC.
According to the report, the region’s growth is expected to rise from a steady 3.6% in 2023 to 4.2% by the end of 2025.
IMF Chief Economist Pierre-Olivier Gourinchas stated, “The Sub-Saharan African region is one that is seeing growth rates that are fairly steady this year, compared to last year, at about 3.6 per cent, and then expected to increase to about 4.2 per cent next year”.
“We’re seeing some pickup in growth from this year to next year. But now, this is certainly a region that’s been adversely impacted by weather shocks and, in some cases, conflict. So, the growth remains subdued and somewhat uneven, and that’s certainly something that we are concerned about”.
However, he also highlighted ongoing challenges, such as weather-related disruptions and conflicts, that could hinder more robust growth.
Division Chief of the IMF’s Research Department, Jean-Marc Natal, echoed these sentiments, noting that while there has been some progress, growth remains “uneven and too low.”
He pointed out that inflation is stabilising in some areas but continues to pose challenges for many countries.
“Inflation [is] stabilising in some countries… and reaching levels close to the target, but half of them are still at a large distance from the target, and a third of them are still having double digit inflation,” he said.
Additionally, high debt levels in the region were flagged, with Natal urging countries to adopt tighter monetary policies and pursue fiscal consolidation, particularly where inflation remains elevated.
The IMF emphasised the need for targeted support for vulnerable populations during these consolidations.
On a global scale, the IMF forecasts steady economic growth of 3.2% for 2024 and 2025, with advanced economies showing signs of recovery while emerging markets, including Sub-Saharan Africa, slowly rebound from previous shocks.
As Ghana aligns itself with these regional trends, the IMF’s optimistic growth projection could herald a period of economic recovery and development in the years ahead.