UK-based research and risk analysis firm, Fitch Solutions, has projected that gold prices will remain relatively high compared to historical averages over the medium term.

According to Fitch, this development is expected to boost Ghana's foreign reserves and economic influence.

In its latest Sub-Saharan Africa Monthly Outlook, Fitch noted that the sustained rise in gold prices will carry significant political and economic implications for countries across the region, particularly Ghana, where gold remains the top export commodity, accounting for about 40% of total exports.

"We think that high gold prices will have a broad range of political implications in Sub-Saharan Africa, given that most countries in the region export at least some gold," the report stated.

Fitch also indicated that strong gold prices have contributed to increased foreign reserves, with the boost in gold export earnings expected to enable governments to make bold economic decisions.

The firm forecasts that Ghana’s current account surplus will widen from 4.2% of Gross Domestic Product (GDP) in 2024 to 5.8% in 2025, largely driven by robust gold prices and higher export receipts.

Ghana’s foreign reserves are projected to rise sharply from $6.4 billion in 2024 to $11.6 billion by the end of 2025, providing the country with a comfortable import cover of 4.8 months.

SP/MA

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