Ghana set to overtake Ethiopia as Africa’s eighth-largest economy

By: Nana Karikari, Senior Global Affairs Correspondent

Ghana is set to overtake Ethiopia as Africa’s eighth-largest economy as its Gross Domestic Product expands to $128.64 billion [approx. GH₵1.50 trillion], according to the International Monetary Fund.

The macroeconomic update from multilateral lenders highlights a major shift in continental rankings, with Ghana rising from 10th position in 2025 to surpass Ethiopia in 2026 amid steady domestic resource growth.

The Bretton Woods institutions project Ghana’s Gross Domestic Product at $128.64 billion [approx. GH₵1.50 trillion] for 2026, as reflected in their October 2026 World Economic Outlook. The Fund is also forecasting a 5.7% growth rate for Ghana in 2026.

This means the size of the Ghanaian economy will take a quantum leap from the earlier $114.71 billion [approx. GH₵1.34 trillion].

In 2025, Ghana’s GDP was estimated at $108.1 billion [approx. GH₵1.26 trillion], reflecting a projected GDP growth rate of 4.8%. It stood at the 10th position.

Ethiopia (GDP of $127.15 billion [approx. GH₵1.48 trillion]) is expected to dislodge DR Congo to the 9th position with a GDP of $122.28 billion [approx. GH₵1.43 trillion].

According to the Fund, the seven biggest economies in Africa will remain the same in 2026.

South Africa ($490 billion [approx. GH₵5.71 trillion]), Egypt ($435.34 billion [approx. GH₵5.08 trillion]) and Nigeria ($390.37 billion [approx. GH₵4.55 trillion]) will come 1st, 2nd and 3rd, respectively.

In 4th, 5th, 6th and 7th positions are Algeria, Morocco, Angola and Kenya, respectively.

Using multilateral economic data over a period, the growth trajectory demonstrates steady performance despite challenges in public debt management and external vulnerabilities.

The country’s position highlights its resilience in combining natural resource wealth with expanding services and industrial sectors, maintaining one of the continent’s most stable macroeconomic frameworks.

Ghana’s economic composition is diversified relative to its West African peers. While gold and cocoa exports remain significant, the oil and gas sector has increasingly contributed to both GDP and fiscal revenue, stabilising earnings amid commodity price fluctuations.

Ghana’s projected expansion underscores the tangible impact of recent fiscal policy refinements and multilateral backing. Sustaining this momentum will depend on prudent debt management, continued industrial diversification, and steady revenue collection across key export sectors.