Ghana’s economic outlook as of February 2025 indicates a strong economic growth of 6.3% in 2024, but challenges like inflation (11.5% projected for 2025) and poverty (peaking at 31.5%) persist. Strategic initiatives such as a $13 billion debt restructuring and a National Economic Dialogue aim to foster fiscal stability and sustainable growth.
As of February 2025, Ghana’s economic outlook is characterized by both challenges and opportunities. The economy demonstrated robust growth in 2024, with an average real GDP growth rate of 6.3 percent across the first three quarters, showing a significant improvement from the 2.6 percent recorded during the same period in 2023. Quarterly growth rates of 4.8 percent, 7.0 percent, and 7.2 percent in the respective quarters highlight the strongest growth observed in the past five years.
Looking ahead to 2025, projections for GDP growth vary; the International Monetary Fund (IMF) forecasts a growth rate of 4.4 percent, while the World Bank anticipates a slightly lower rate of 4.2 percent. Inflation remains a pressing issue, with the IMF projecting an 11.5 percent increase in consumer prices for 2025. To address fiscal challenges, President John Mahama has initiated a “National Economic Dialogue” to review the existing $3 billion IMF program and better align it with current economic conditions, aiming for sustainable growth.
In late 2024, Ghana concluded a $13 billion debt restructuring, reducing its debt burden by $4.7 billion. This achievement allows the country to exit a two-year default and re-establish its presence in global capital markets. The industrial sector is expected to grow between 4 and 6 percent in 2025, driven by gold mining and emerging lithium production. The services sector is projected to lead economic growth, supported by reforms and technological advancements.
The agricultural sector is expected to see an average growth rate of around 3.1 percent year-on-year for 2025; however, it faces challenges such as climate-related issues and limited financing. Poverty rates are predicted to rise, peaking at 31.5 percent in 2025 before experiencing a slight decline, primarily due to minimal growth in services and agriculture and increasing prices outpacing income growth for the most vulnerable populations.
In conclusion, Ghana is confronted with significant economic challenges, including inflation and rising poverty levels. Nevertheless, initiatives such as debt restructuring and strategic policy reforms provide a potential pathway to sustainable economic growth and fiscal stability.
In summary, although Ghana’s economic landscape is fraught with challenges, including inflation and rising poverty rates, proactive measures like debt restructuring and policy reforms stand to facilitate a trajectory towards sustainable growth and fiscal balance.
Original Source: www.ghanaweb.com
