Ghana’s GDP Growth Projected to Reach 5.4% by 2025, Driven by Mining Sector Resurgence

Ghana’s GDP is projected to grow by 5.4% in 2025, driven by mining activities, notably in gold production. Despite improvements, non-mining sectors such as manufacturing and real estate face ongoing challenges. Structural issues must be addressed to sustain growth.

Ghana’s economy is anticipated to sustain its growth trajectory into 2025, with a Gross Domestic Product (GDP) forecast to rise by 5.4% on a year-on-year basis. This optimistic projection was presented by Jibran Qureishi, the Head of Africa Research at Standard Bank Group, during the Stanbic Economic Series webinar entitled “The Economy under a New Era.” He underscored the significant drivers of economic growth as well as the structural risks that could affect overall performance.

The economy exhibited remarkable resilience in 2024, achieving a GDP growth rate of 5.8%, a considerable improvement from 2.9% in 2023. Mr. Qureishi 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, has been a central factor in Ghana’s economic recovery. Mr. Qureishi noted a resurgence in mining activities nationwide, stating, “There has been a notable pickup in mining activities across the country, with gold leading the charge.” He also highlighted the revival of previously underperforming mines, such as Obuasi, and the upcoming establishment of a significant lithium facility projected for 2026/2027.

Nevertheless, challenges persist in non-mining sectors, notably in manufacturing and real estate, where ongoing difficulties have been reported. “While mining is flourishing, sectors such as manufacturing and real estate continue to face persistent headwinds,” Mr. Qureishi observed. Agricultural productivity has also suffered due to adverse weather conditions last year, particularly a dry spell in Northern Ghana, impeding growth prospects in that sector.

While remaining optimistic about the economic outlook, Mr. Qureishi stressed the necessity of addressing structural weaknesses to ensure sustained growth. He remarked, “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 economic growth is projected to continue with a 5.4% increase in GDP for 2025, primarily driven by the recovering mining sector, particularly gold production. However, significant challenges within non-mining sectors must be addressed to maintain this upward trend. The resilience demonstrated in 2024 underscores the potential for future growth, yet structural issues require attention for a stable economic environment.

Original Source: africa.businessinsider.com