Ghana’s economy is projected to grow by 4.8% in 2026, supported by a rebound in oil production and a surge in services, the World Bank said in its October 2026 Africa Economic Update. The growth rate will hold steady from earlier forecasts, with the World Bank anticipating a slight uptick to 4.9% in 2027.
The Bretton Woods institution attributed the growth to a recovery in oil and gas activities combined with ongoing structural and fiscal reforms. “In Ghana, economic activity remained robust in the second quarter of 2026, although growth moderated slightly,” the report noted. Real GDP expanded by 6.0% year-on-year in the second quarter, down from 6.6% during the same period in 2025.
On the expenditure side, strong domestic demand sustained growth, with investment rising 53.0% and overall domestic demand increasing by 11.2%. This signals continued momentum in both private and public spending ahead of the World Bank’s Annual Meetings in Bangkok, Thailand.
Services remained the main engine of growth, expanding by 8.0% and accounting for nearly 60% of overall GDP growth. The ICT sector led the way, with activity surging 30.9%. Industrial growth also picked up, rising to 4.3% from 2.4% the previous year, buoyed by a sharp increase in oil and gas production. Agricultural growth, however, slowed sharply to 3.9% from 7.1%, reflecting a steep contraction in fishing.
Overall, growth concentrated in services, ICT, and hydrocarbons while momentum weakened across parts of the non-oil economy, the report said.
The World Bank’s update also covered the wider West and Central Africa subregion, projecting steady growth of 4.5% in 2026, unchanged from 2025. The forecast anticipates a modest rise to an annual average of 4.7% in 2027 and 2028. Nigeria, the region’s largest economy, continues to shape the subregional outlook. Excluding Nigeria, growth is estimated to ease from 5.4% in 2025 to 5.0% in 2026, before recovering to an average of 5.3% in the following two years.
Sub-Saharan Africa’s growth is expected to increase to 4.3% in 2026 but with limited impact on poverty reduction, according to the report.
The World Bank’s focus on oil and gas recovery in Ghana reflects the sector’s renewed contribution to industrial growth. After a period of slowdown, oil production has ramped up sharply this year, providing a boost to the industrial sector and government revenues.
The services sector’s strength, particularly the ICT segment, points to expanding digital infrastructure and connectivity. The 30.9% growth in ICT activity is one of the highest rates in the region, driven by increased mobile and internet penetration.
Investment growth at 53.0% indicates strong confidence from both domestic and foreign investors, despite global economic uncertainties. This surge in investment is likely linked to government initiatives to improve infrastructure and business environments.
Agriculture’s slowdown, especially the contraction in fishing, contrasts with the other sectors’ gains. The 3.9% growth in agriculture marks a significant decline from the 7.1% recorded in 2025, suggesting challenges in that part of the economy that could affect rural livelihoods.
The World Bank’s assessment came ahead of its Annual Meetings in Bangkok, where regional economic trends and development strategies are key topics. Ghana’s steady growth projection places it among the faster-growing economies in Africa, even as challenges persist.
The report’s data points to an economy increasingly reliant on services and hydrocarbons, with non-oil sectors showing mixed results.
Ghana’s projected GDP growth rates for 2026 and 2027 place it slightly ahead of the West and Central African subregion average, but the uneven sectoral performance raises questions about the sustainability and inclusivity of this growth.
According to Joy Online.
