With real Gross Domestic Product (GDP) growth predicted at 3.6% in 2025, Ghana’s economy is anticipated to continue on its recovery trajectory.
Databank Research predicts that the services sector will be the primary force behind this growth, while the cocoa subsector is starting to show encouraging signs of progress albeit still trailing.
According to its 2025 Economic Outlook, real GDP growth in 2025 would gradually slow to 3.6% annually, building on Ghana’s robust 2024 economic recovery and the country’s transition to a new government after the elections.
“The adjustment process and the attempts to build on the accomplishments of the previous administration may slow down policy implementation and sector activities in the short to medium term, even though the new government’s objectives may help long-term growth.” Noted.
Despite budgetary restraints and energy debt, it expressed cautious confidence in the growth of the industrial sector.
Although the government’s project revitalization and the expansion of gold mining have boosted the industry, Databank warns that continued debt problems in the energy sector and impending budgetary limitations may impede the growth of the manufacturing and construction subsectors.
It also noted that Ghana’s real GDP growth will reach a median of 4.5% by the end of 2024.
“Ghana’s economic development in 2024 recovered well from a 2023 slowdown, primarily due to improved export and tax revenues, a lower inflation rate, and more support from the World Bank and International Monetary Fund.”
We observe that growth was better than anticipated in 2Q ’24 [quarter 2, 2024], with real GDP growth of 6.9% and non-oil growth of 7.0% year over year, as opposed to 2.5% and 4.4% in 2Q ’23 [second quarter of 2023], respectively. It emphasized that the industrial and services sectors, which grew by 9.3% and 5.8% year over year, respectively, were the main drivers of this expansion.
It went on to say that a major factor in fostering this expansion was the rise in government expenditure, especially in the run-up to the elections in December.
Nonetheless, the persistent difficulties in the cocoa subsector persisted in impeding the expansion of the agricultural industry.
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