Standard Bank projects a GDP growth of 5.4% for Ghana in 2025, driven by mining sector recovery. Jibran Qureishi highlights resilience in economic growth and stresses the importance of addressing fiscal challenges and currency stability to maintain momentum.
According to Standard Bank Group’s Head of Africa Research, Jibran Qureishi, Ghana’s economy is expected to grow by 5.4% year-on-year in 2025. This projection stems from a webinar titled “The Economy Under a New Era,” where Mr. Qureishi shared insights into the optimistic economic outlook. He stated that Ghana’s GDP growth demonstrated resilience, with a projected increase from 2.9% in 2023 to 5.8% in 2024, aided largely by the mining sector, particularly gold production.
The mining industry is recognized as a significant factor in Ghana’s economic recovery. Mr. Qureishi noted a resurgence in mining activities, emphasizing that gold remains a key area of growth. He also mentioned the revival of underperforming mines, including Obuasi, and the expected launch of a large lithium facility around 2026/2027, all of which are anticipated to further enhance economic expansion.
While the mining sector flourishes, challenges persist in other industries. Mr. Qureishi pointed out that the manufacturing and real estate sectors are currently facing difficulties. Additionally, a dry spell last year adversely affected agricultural productivity in Northern Ghana, constraining that sector’s growth.
Despite these obstacles, Mr. Qureishi maintains a positive perspective on Ghana’s economic path. He stressed the importance of addressing issues such as energy sector arrears and fiscal policy imbalances to sustain momentum. Predictions regarding the currency indicate that the Ghanaian cedi could weaken against the US dollar, potentially reaching GH¢16.4 to $1 due to structural weaknesses in foreign exchange flows.
Mr. Qureishi highlighted the need for careful economic management, particularly concerning reliance on the central bank for foreign exchange issues. Despite these challenges, he expressed optimism regarding macroeconomic stability and the potential for growth.
In conclusion, Standard Bank forecasts Ghana’s GDP to rise by 5.4% in 2025, driven mainly by the mining sector’s performance, although other sectors face challenges. The economic outlook remains positive, contingent upon addressing fiscal challenges and maintaining currency stability. Addressing these matters is crucial for sustaining long-term economic growth in Ghana.
Original Source: www.ghanabusinessnews.com
