Ghana’s economic outlook as of February 2025 reveals a robust average real GDP growth rate of 6.3 percent in 2024, with varying projections for 2025 from the IMF and World Bank. Inflation concerns persist, prompting a national dialogue on fiscal reforms. Successful debt restructuring has improved the economic landscape, while sector performances indicate growth potential amidst challenges in poverty and agriculture.
As of February 2025, Ghana’s economic environment showcases a mix of challenges and opportunities. In 2024, the nation recorded an impressive average real GDP growth rate of 6.3 percent in the first three quarters, greatly outpacing the 2.6 percent growth observed in the same quarter of 2023. Notably, the individual quarterly expansions included 4.8 percent for the first quarter, 7.0 percent for the second, and a remarkable 7.2 percent for the third quarter, marking the highest growth within the past five years.
Looking forward to 2025, economic growth projections differ across organizations. The International Monetary Fund (IMF) expects Ghana’s real GDP to grow by 4.4 percent, whereas the World Bank predicts a slightly lower growth rate of 4.2 percent. Inflation remains a pressing issue, as the IMF forecasts a consumer price increase of 11.5 percent for 2025. In response to these fiscal hurdles, President John Mahama has initiated a “National Economic Dialogue” to evaluate and possibly reform the current $3 billion IMF program to better suit the dynamic economic landscape.
In late 2024, Ghana successfully restructured its debt, reducing it by $4.7 billion, thereby concluding a two-year default and enabling re-access to global capital markets. This strategic move positions Ghana to secure broader economic stability. The industrial sector is projected to see growth between 4 and 6 percent in 2025, primarily driven by advancements in gold mining and the burgeoning lithium industry. The services sector is also expected to play a pivotal role in economic advancement, supported by ongoing reforms and technology investments.
Agriculture is anticipated to grow at an average rate of around 3.1 percent for 2025; however, it faces significant challenges, such as climate change effects and limited financial resources. Moreover, poverty rates are expected to increase until 2026, potentially reaching 31.5 percent in 2025 before experiencing a slight decline. This anticipated rise in poverty is linked to stagnant growth in both the service and agriculture sectors and the inflationary pressures that exceed the income growth for the economically disadvantaged.
In conclusion, Ghana’s economic outlook as of February 2025 highlights significant growth coupled with pressing challenges such as inflation and rising poverty rates. While forecasts indicate varied GDP growth and the potential revitalization of various sectors, strategic actions, including debt restructuring and an impending national dialogue, may facilitate a transition towards sustained fiscal stability and growth.
Original Source: www.ghanaweb.com
