Ghana’s economy to grow in 2022 – EIU

The Economist and Intelligence Unit (EIU) has said that Ghana’s real Gross Domestic Growth (GDP) grew by 5% in 2021, given a strengthening of global and domestic conditions; such growth will have been fairly broad-based.

Real GDP, growth EIU predicted, will rise to 5.2% in 2022.

“We expect gold production and processing to strengthen in 2022, driven by the recommissioning of the Bibiani gold mine in western Ghana, with first gold pour expected in the second half of 2022.

“The mine’s output capacity is expected to be 190,000 ounces in the first 12 months of operation, with a planned ramp-up beyond that, to 240,000 ounces annually.

“Output will also be supported by government efforts to curtail illegal mining, which will boost formal sector activity. Oil output will rise marginally in 2022; that the rise in volumes will be only limited, despite spikes in oil prices due to the Russia-Ukraine war, reflects Ghana’s limited production capacity,” the EIU said its five-year forecast for Ghana released on April 13, 2022

“We expect growth to moderate in 2023-24, to an average of 4.4%, before gradually picking up again, to 4.8% on average in 2025-26. Constrained oil sector growth will keep annual growth below prepandemic rates of 6-8%.

“The government is keen to develop the hydrocarbons sector, but we expect oil production expansion to be limited at existing fields (including Jubilee and Tweneboa Enyenra Ntomme), and development work at new sites will be slow. We expect a final investment decision (FID) on Pecan, an offshore oilfield (managed by Aker Energy, a Norwegian firm), to be reached by end-2022, but production is unlikely until 2025.

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“Oil production volumes are therefore expected to remain below 2019 levels in 2022-24, then rise briskly from end‑2025, assuming that Pecan comes on stream. Output from the gold sector will increase further from 2023 as the Ahafo North mine begins production. Manganese output will dip in 2023-34, then rise again in 2025-26, mirroring movements in global demand.”

By Laud Nartey||Ghana


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