Fitch Solutions warns of post-election austerity impact on Ghana’s 2025 growth

Fitch Solutions is cautioning that Ghana’s economic momentum could slow significantly in 2025 due to anticipated post-election austerity measures.

This comes on the heels of robust growth projections for 2024, driven by strong Q2 performance.

In its latest Sub-Saharan Africa Update, the UK-based research arm highlighted that while private consumption will continue to drive growth into next year, its pace is expected to moderate.

Private consumption growth is forecasted to decelerate from 8.5% in 2024 to 5.5% in 2025, adding 4.8 percentage points to Ghana’s overall real GDP growth.

Additionally, Fitch expects fixed investment to emerge as a more influential growth factor in 2025, signaling potential opportunities and shifts in the business landscape.

Ghana’s GDP is projected to expand by 4.4% in 2025—a slowdown from the anticipated 5.5% growth in 2024. Despite the dip, Fitch notes that this growth rate would still outpace the projected 3.6% average for Sub-Saharan Africa, keeping Ghana positioned as a regional outperformer