The Government of Ghana has set a conservative economic growth target of 4 percent for 2025, with Finance Minister Dr. Cassiel Ato Forson stating that while the projection is realistic, the administration is working to surpass it.
“We are being conservative in our projections to ensure we meet and exceed expectations,” Dr. Forson said, emphasizing the need for responsible economic planning rather than overambitious forecasts that may not materialize.
The government’s decision to adopt a measured growth target follows concerns that previous economic expansions were driven by unsustainable activities, particularly illegal small-scale mining (galamsey).
A Shift Away from Unsustainable Growth
Dr. Forson revealed that some of the country’s past economic growth was inflated by unregulated gold mining, which has devastated Ghana’s forests and water bodies while offering little contribution to national revenue.
“We cannot celebrate growth fueled by galamsey, which is destroying our forests and water bodies,” he stated speaking with Tv3 on Friday, March 14, 2025.
The government is shifting focus toward sustainable and formalized economic activities, including industrialization, agriculture, and renewable energy, as the foundation for long-term growth.
Ensuring Stability While Driving Economic Expansion
While the 4 percent target is lower than recent growth rates, the government believes it reflects the realities of the current economic climate and will allow for better fiscal management, inflation control, and debt reduction.
The establishment of the Ghana Gold Board is expected to help regulate gold exports, curb smuggling, and ensure that the mining sector contributes meaningfully to the economy.
Also, the government has set a 4.8 percent target for non-oil GDP growth. The end-year inflation target is 11.9 percent, while the primary budget surplus is expected to be 1.5 percent of GDP. These targets are designed to ensure macroeconomic stability and long-term fiscal sustainability.
Dr. Forson assured Ghanaians that the government’s priority is not just growth numbers, but sustainable expansion that benefits all sectors of the economy.
