As of February 2025, Ghana’s economy shows promising growth with a GDP increase of 6.3% in 2024. Challenges include projected inflation at 11.5% and rising poverty rates peaking at 31.5%. Strategic initiatives, such as a $13 billion debt restructuring and a National Economic Dialogue, are aimed at fostering sustainable growth amidst these challenges.
As of February 2025, Ghana’s economic outlook includes both significant challenges and considerable opportunities for growth. In 2024, the country recorded robust economic performance, achieving an average real GDP growth rate of 6.3%, a notable increase from 2.6% in the same period of 2023. This growth was spurred by quarterly expansions of 4.8%, 7.0%, and a peak of 7.2%, the highest seen in five years.
Looking forward to 2025, economic projections differ among institutions. The International Monetary Fund (IMF) expects a real GDP growth of 4.4%, while the World Bank predicts a slightly lower rate of 4.2%. These forecasts highlight a continued, albeit moderated, growth trajectory.
Inflation poses another significant concern, with the IMF projecting a rise in consumer prices by 11.5% in 2025. To tackle fiscal challenges, President John Mahama initiated a “National Economic Dialogue” aimed at reviewing the existing $3 billion IMF program. This dialogue intends to ensure the program aligns with the current economic landscape and fosters sustainable growth.
Ghana successfully completed a $13 billion debt restructuring in late 2024, effectively reducing its debt burden by $4.7 billion. This strategic financial maneuver sets the stage for the country to exit a prolonged two-year default and re-engage with global capital markets.
Sectoral performance varies, with the industrial sector expected to grow between 4% and 6% in 2025, primarily driven by advancements in gold mining and lithium production. The services sector is anticipated to be a key growth driver due to reforms and investments in technology. Conversely, agricultural growth is projected to average approximately 3.1% for the year, facing challenges such as climate-related impacts and limited financing.
Poverty rates are projected to increase until 2026, reaching a peak of 31.5% in 2025, before experiencing a slight decline. This rising trend is attributed to stagnant growth in both the services and agricultural sectors, coupled with inflation outpacing income growth for lower-income households. In summary, while Ghana grapples with inflation and rising poverty, proactive initiatives like debt restructuring and fiscal reforms hold promise for sustainable growth and stability in the future.
Ghana’s economic outlook as of early 2025 showcases both promising growth and ongoing challenges. The country’s robust GDP growth in 2024 marks a positive trend despite inflation concerns and increasing poverty rates. Strategic decisions, such as debt restructuring and the National Economic Dialogue, are critical steps towards achieving long-term economic stability and promoting growth across various sectors. Vigilance and adaptation to economic conditions will be essential for the country in the coming years.
Original Source: www.ghanaweb.com
