Ghana’s GDP is forecast to grow by 5.4% in 2025, driven by the mining sector, especially gold production. While the economy shows positive momentum after a strong 2024 recovery, challenges in non-mining sectors persist, necessitating attention to structural weaknesses for sustained growth.
Ghana’s GDP is expected to grow by 5.4% in 2025, as projected by Jibran Qureishi, Head of Africa Research at Standard Bank Group. This growth is largely driven by the mining sector, particularly gold production, even as challenges continue in non-mining sectors like manufacturing and real estate. This outlook was shared during the Stanbic Economic Series webinar, titled “The Economy under a New Era,” where Mr. Qureishi discussed key growth drivers and structural risks impacting economic performance.
Notably, Ghana’s economic performance in 2024 demonstrated impressive resilience, with a GDP growth of 5.8%, an increase from 2.9% in 2023. Mr. Qureishi described this as the fastest growth rate since 2021 and emphasized that this momentum is likely to carry over, with predicted growth rates of 5.4% in 2025 and 5.7% in 2026.
The mining sector remains crucial for Ghana’s economic recovery, especially gold production. Mr. Qureishi noted a significant uptick in mining activities, underscoring gold as the leading contribution. He also highlighted the revival of underperforming mines, like Obuasi, along with the anticipated launch of a large lithium facility expected around 2026/2027, which is poised to enhance future economic output significantly.
However, despite the flourishing mining industry, other sectors face persistent challenges. Manufacturing and real estate continue to struggle, and agricultural productivity has been hindered by last year’s dry conditions in Northern Ghana. While Mr. Qureishi remains optimistic about the direction of Ghana’s economy, he cautioned that essential structural weaknesses must be addressed to maintain this growth trajectory. He remarked on the importance of tackling issues such as energy sector arrears and fiscal imbalances for sustained economic stability.
In conclusion, Ghana’s GDP is projected to grow by 5.4% in 2025, primarily driven by the mining sector’s recovery, particularly in gold production. Despite this positive outlook, challenges in non-mining sectors such as manufacturing and real estate persist, alongside agricultural productivity declines due to environmental factors. Addressing structural weaknesses is critical to ensure economic growth remains stable moving forward.
Original Source: africa.businessinsider.com
