Standard Bank Forecasts 5.4% GDP Growth for Ghana in 2025
Ghana’s GDP is projected to grow by 5.4% in 2025, driven by the mining sector’s resurgence. Despite challenges in agriculture and manufacturing, optimism remains strong regarding economic stability and future growth. Jibran Qureishi emphasized the importance of addressing fiscal imbalances and currency management to maintain this trajectory.
Standard Bank has projected that Ghana’s GDP will grow by 5.4% in 2025, demonstrating a positive economic outlook. Jibran Qureishi, the Head of Africa Research at Standard Bank Group, provided these insights during the Stanbic Economic Series webinar. He expressed optimism about the resilience of Ghana’s economy, with GDP growth rising from 2.9% in 2023 to 5.8% in 2024, making it the most robust growth since 2021.
Mr. Qureishi highlighted that the mining sector, particularly gold, is poised to be a primary driver of this growth. He stated, “There has been a notable pickup in mining activities across the country, with gold leading the charge. Additionally, the revival of underperforming mines, such as Obuasi, and the anticipated launch of a large lithium facility around 2026/2027, are expected to further bolster growth.”
While the mining sector shows promise, Mr. Qureishi pointed out the challenges facing non-mineral sectors such as manufacturing and real estate. He noted that agricultural productivity suffered due to last year’s drought in Northern Ghana, which hindered growth in that sector.
Despite these difficulties, Mr. Qureishi expressed confidence in Ghana’s economic trajectory, stating, “The revival of key mining operations and the potential for higher-than-expected growth in 2026 underscore the resilience of Ghana’s economy. However, it is crucial to address issues, such as arrears in the energy sector and fiscal policy imbalances, to sustain this growth momentum.”
On the currency situation, he predicts the Ghanaian cedi may weaken against the US dollar, forecasting a rate of approximately GH¢16.4 to $1. He emphasized the need for prudent economic management due to structural concerns regarding foreign exchange flows, noting that the reliance on the Bank of Ghana for managing foreign exchange highlights underlying issues in economic stability.
Despite these challenges, Mr. Qureishi remains optimistic about Ghana’s future economic prospects and the importance of maintaining macroeconomic stability.
In summary, Standard Bank forecasts that Ghana’s GDP will continue to grow, reaching 5.4% in 2025 due to key sectors like mining. Challenges in other sectors, including agriculture and manufacturing, persist, yet the resilience of the mining industry and economic management strategies are crucial for sustainable growth. Mr. Qureishi’s insights reflect a balanced view of optimism amidst the complexities of Ghana’s economic landscape.
Original Source: www.ghanabusinessnews.com
