Ghana’s GDP is projected to grow by 5.4% in 2025, bolstered by the mining sector, particularly gold. Although recent economic conditions show improvement with a growth rate of 5.8% anticipated for 2024, challenges persist in non-mining sectors. Jibran Qureishi from Standard Bank Group emphasizes the need to address structural challenges to sustain growth.
Ghana’s economy is anticipated to continue its growth trajectory into 2025, with a projected Gross Domestic Product (GDP) growth of 5.4% year-on-year, as articulated by Mr. Jibran Qureishi, Head of Africa Research at Standard Bank Group. This forecast was presented during the Stanbic Economic Series webinar, titled “The Economy under a New Era,” where he underscored the driving forces behind this growth and associated risks.
Following a robust GDP growth rate of 5.8% in 2024, which significantly improved from 2.9% in 2023, Mr. Qureishi expressed optimism regarding consistent economic momentum. He remarked, “This is the fastest rate of economic growth since 2021, and we anticipate this momentum will continue, with projected growth of 5.4% in 2025 and 5.7% in 2026.”
The mining sector, particularly gold production, is recognized as a crucial element of Ghana’s economic revival. Mr. Qureishi noted, “There has been a notable pickup in mining activities across the country, with gold leading the charge.” The restoration of previously underperforming mines, alongside plans for a significant lithium facility expected by 2026/2027, is expected to bolster future economic performance.
Conversely, non-mining sectors face persistent obstacles. Mr. Qureishi observed, “While mining is flourishing, sectors such as manufacturing and real estate continue to face persistent headwinds.” He further mentioned the adverse effects of last year’s dry spell on agricultural productivity in Northern Ghana, affecting growth in that sector. Despite these challenges, he maintained a positive outlook, stressing that addressing structural weaknesses is vital for sustainable growth. He stated, “The revival of key mining operations and the potential for stronger-than-expected growth in 2026 highlight the resilience of Ghana’s economy, but issues such as energy sector arrears and fiscal imbalances must be tackled for growth to remain stable.”
In conclusion, Ghana’s economy is projected to grow by 5.4% in 2025 propelled primarily by the mining sector, notably gold production. Despite the positive growth forecasts, there are significant challenges residing in non-mining sectors such as manufacturing and real estate, exacerbated by recent agricultural setbacks. Addressing structural weaknesses will be imperative in maintaining the economic vitality of the nation.
Original Source: africa.businessinsider.com
