Fitch Solutions reiterates stronger economic recovery for Ghana in 2024
Fitch Solutions has emphasized a stronger-than-expected economic recovery in Ghana this year.
In its latest Sub-Saharan Africa Update, the UK-based firm said robust growth is ahead following strong quarter 2, 2024 figures.
It however warned that post-election austerity would dampen the 2025 growth outlook in Ghana.
It earlier projected that Ghana’s economy will expand by 4.4% in 2025, lower than the anticipated 5.5% Gross Domestic Product growth in 2024.
Although this represents a deceleration compared to 2024, it will remain above the 3.6% it forecast for Sub-Saharan Africa in 2025.
This 4.4% GDP growth, Fitch Solutions, pointed out that it will keep Ghana a regional outperformer.
The UK-based firm added that private consumption will remain the engine of growth next year.
“We expect inflation to trend down through 2025, averaging 16.0%, the lowest annual rate since 2021. Easing price pressures will bolster the purchasing power of households, boost consumer confidence, and incentivize private consumption”, it mentioned.
It also projected that private consumption growth will slow from 8.5% in 2024 to 5.5% in 2025, contributing 4.8 percentage points to top-level real Gross Domestic Product (GDP) growth.
It added that fixed investment will become a more significant growth driver in 2025.