World Bank projects 17.2% inflation rate for Ghana in 2025, lower than IMF's target

The World Bank has projected Ghana’s inflation rate to hit 17.2% in 2025, slightly above the country's current trajectory but still below the International Monetary Fund's (IMF) programme target of 15%.

This forecast is part of the World Bank’s April 2025 Africa’s Pulse report released by the bank.

The bank is, however, expecting a significant decline in Ghana’s inflation to 9.4% in 2026 and further down to 8.0% by 2027, signaling a steady return to price stability in the medium term.

“Of 47 countries in the region, 14 still have inflation rates of two digits or more including Angola, Ethiopia, Ghana, Malawi, Nigeria, Sudan and Zimbabwe among others. By 2027, the number of countries with two-digit or higher inflation rates is expected to fall to six,” the report stated.

Ghana is among 14 African countries still grappling with double-digit inflation alongside Angola, Ethiopia, Malawi, Nigeria, Sudan and Zimbabwe.

However, the report anticipates that this number will shrink to six by 2027 as more economies stabilise.

According to the World Bank, inflation across Sub-Saharan Africa is broadly trending downward, thanks to easing supply chain pressures, tighter monetary and fiscal policies and improved currency stability.

Roughly, 70% of countries in the region recorded slower inflation in 2024.

The median inflation rate across sub-Saharan Africa dropped from 7.1% in 2023 to 4.5% in 2024 with a slight projected rebound to 4.6% for the 2025–2027 period.

Inflation disparities remain wide as countries like Ghana continue to navigate the lingering effects of past economic shocks, the bank stated in its report.

The report cautioned that global risks, particularly the rise of protectionist trade policies could disrupt inflation convergence in the region.

SP/AE

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