Tag: Standard Bank Research

  • Analysts clash over Ghana’s 2026 growth trajectory  …as Fitch warns of geopolitical headwinds but Standard Bank sees expansion

    Analysts clash over Ghana’s 2026 growth trajectory …as Fitch warns of geopolitical headwinds but Standard Bank sees expansion

    By Adnan Adams Mohammed 

     

    International rating agency Fitch Ratings and financial powerhouse Standard Bank Research have presented sharply divergent forecasts for Ghana’s economic performance, sparking a lively debate among local policymakers and investors over the trajectory of the country’s post-restructuring recovery.

    While Standard Bank Research has upgraded its baseline projection, predicting robust Gross Domestic Product (GDP) expansion between 5.9% and 6.1%, Fitch Ratings has taken a more conservative stance, projecting a moderate cooling of economic momentum to 5.0%.

    The differing outlooks highlight a tension between structural domestic gains and intensifying external global shocks.

    Standard Bank: Structural Reforms Anchor Optimism

    Standard Bank’s optimistic forecast relies heavily on a stronger-than-expected 2025 baseline, during which the Ghanaian economy expanded by 6.0%, outpacing initial consensus estimates.

    Speaking at a market landscape webinar organized by Stanbic Bank Ghana, Jibran Qureishi, Head of Africa Research at Standard Bank, argued that key structural transformations and aggressive infrastructural execution will cushion the nation from global market turbulence.

    “Given the base has changed now and is higher than we had expected, we still believe that growth in 2026 will be between 5.9% and 6.1%, with potential to pick up to between 6.2% and 6.3% in 2027,” Qureishi stated. “Regardless of risks such as tensions in the Middle East, Ghana’s economy would still expand due to some structural changes and investments on the ground.”

    Qureishi pointed to a major wave of public and private capital spending, including the newly commissioned Tema Port expansion, the ongoing reconstruction of Kumasi Airport, and the expansion of the Accra-Tema Motorway, as critical economic catalysts. Furthermore, he noted that the newly established gold board’s strict oversight will successfully curb illicit leakages in artisanal mining, driving formalized investments back into the extractive sector.

    Fitch: Geopolitical Shocks Face Sub-Saharan Resilience

    Conversely, Fitch Ratings expects a slight deceleration from 2025’s 5.9% mark, pinning its conservative 5.0% growth forecast on an unpredictable global energy market and escalating geopolitical disruptions.

    According to Fitch’s latest analytical brief, the widening dimensions of international conflict serve as a critical test for Sub-Saharan African (SSA) oil-importing sovereigns. The agency warned that the transmission channels of these external conflicts, primarily spiked refined petroleum costs and potential fertilizer shortages, will inevitably apply friction to domestic production.

    “Our baseline forecasts are for real GDP to grow in all Fitch-rated SSA sovereigns this year… but some oil importers are exposed to a supply shock,” Fitch Ratings detailed in its report. The agency added that while improvements to monetary, fiscal, and macroeconomic policy settings since 2022 have significantly enhanced the region’s overall structural resilience, “the war’s impact will test its depth and durability.”

    Despite projecting a growth slowdown, Fitch noted that Ghana’s macroeconomy is confronting these external vulnerabilities from a position of relative stability. Thanks to central bank intervention strategies and a strong gold price rally, improved exchange-rate flexibility and built-up international reserves have provided fiscal authorities with a vital cushion against rapid inflationary pass-throughs.

    The New ‘Low Beta’ Economy

    The conflicting numbers come at a time when Ghana’s relationship with international capital markets has fundamentally shifted. Standard Bank’s data reveals that foreign investor participation in Ghana’s domestic debt market has plummeted to below 5%, down from nearly 40% in the pre-pandemic era.

    While this capital flight presents deep challenges for securing external financing, economists note it has paradoxically insulated the local economy from global portfolio volatility. By operating as a “low beta market,” Ghana’s domestic growth drivers are increasingly tied to internal output rather than the whims of international hot money.

    As the state navigates the year, the ultimate growth outcome will depend on whether local infrastructure and resource formalization can outrun the compounding costs of global supply chain disruptions.

     

     

  • Standard Bank Research projects resilient 6.1% growth for Ghana amid geopolitical headwinds

    Standard Bank Research projects resilient 6.1% growth for Ghana amid geopolitical headwinds

    By Adnan Adams Mohammed

     

    Ghana’s macro-economic recovery is poised to maintain solid momentum, with the economy projected to expand between 5.9% and 6.1% in 2026, according to the latest market insights from Standard Bank Research.

    The optimistic growth forecast comes at a crucial time when emerging markets are navigating complex global pressures, particularly heightened geopolitical tensions and supply chain disruptions rooted in the Middle East conflict. Despite these severe external challenges, the research underlines Ghana’s strong foundational resilience, buoyed by robust performances in key domestic sectors.

    According to investment analysts, the West African gold, cocoa, and oil-producing nation is successfully charting its way out of its most severe economic crisis in decades, showing greater price stability and structural fortitude.

    “Ghana’s economic fundamentals are proving remarkably resilient against external shocks,” noted a lead macro-strategist at Standard Bank. “While escalating tensions in the Middle East pose undeniable risks to global energy costs and trade routes, Ghana’s diversified resource base particularly a booming gold sector and strategic fiscal consolidation provides an essential buffer that will keep growth firmly on track.”

     

    Driving Force: Services and Industry

    The Standard Bank projection aligns with recent data from the Ghana Statistical Service (GSS), which reported that the nation’s economy expanded by an impressive 6.4% in the first quarter of 2026, surpassing previous cycles. The expansion continues to be heavily propelled by the dynamic services sector alongside crucial gains in industrial and manufacturing activities.

    Government authorities have expressed confidence that the projected 5.9% to 6.1% growth window for the full year is highly achievable if current fiscal discipline is maintained.

    “The latest numbers reveal an economy that is expanding continuously while capturing much-needed price stability,” remarked Dr. Alhassan Iddrisu, Government Statistician. “The services and industrial sectors are consistently anchoring this expansion, ensuring that our macroeconomic recovery translates into broader industrial output, even as we monitor external variables closely.”

    Navigating Downside Risks

    Despite the glowing growth outlook, local industry players and financial experts urge a cautious approach. Elevated global oil prices caused by overseas instability have the potential to filter into domestic inflation, posing a direct threat to corporate operational budgets and consumer purchasing power.

    For many local enterprises, the challenge lies in bridging the gap between positive high-level statistics and the reality of high commercial lending rates on the ground.

    “We cannot ignore the downside risks highlighted by global financial developments,” warned a representative from the Association of Ghana Industries (AGI). “A 6% growth environment is excellent news for attracting foreign direct investment, but domestic policymakers must ensure we cushion local industries against expensive utility costs and import-dependent price spikes triggered by global conflicts. True stability will be defined by how well we shield our local supply chains.”

     

    With the central bank aggressively deploying its inflation-targeting framework to anchor market expectations, Standard Bank’s report highlights that Ghana is entering the latter half of 2026 as one of the standout economic performers in the Sub-Saharan region.