Fitch forecasts 5% growth in Ghana’s gold production output for 2024
Research firm Fitch Solutions has projected a 5% increase in Ghana’s gold output for this year – 2024.
The growth projection according to Fitch Solutions is due to mine restorations, new projects coming online, and the integration of artisanal mining into the official output figure.
The projected gold output, Fitch Solutons further notes, supports the country’s healthy export outlook.
“Net exports will drag on growth in 2024, despite a healthy outlook for exports. Our Mining team projects a 5.0% increase in gold output due to mine restorations, new projects coming online, and the integration of artisanal mining into the official output figure, supporting exports,” it stated.
Regarding the agricultal sector, Fitch Solution asserts a 3% rise in cocoa production, supported by higher farmgate prices that should curb smuggling of the country’s cocoa beans.
“Our agribusiness team forecasts a 3.0% rise in cocoa production, supported by higher farmgate prices that should curb smuggling, adding additional tailwinds to export growth,” it noted.
“That said, we project imports to recover in 2024 as a result of a rise in domestic demand, which will offset the impact of solid exports on headline growth. All told, we anticipate that net exports will shave off 0.4pp from headline real GDP growth in 2024, following a positive contribution of 1.9pp in 2023,” it added.
According to the Ghana Statistical Service’s 2023 Trade Vulnerabilities Report which highlighted the country’s exports in the initial half of the year, gold emerged as one of the key exports witnessing a substantial 9.4 percentage point surge in its export share compared to that of 2022.
Regionally, gold emerged as the linchpin, constituting over half of the country’s exports to Europe (53.4%) and nearly half to both Asia (48.0%) and Africa (47.0%).
