Fitch Solutions has projected Ghana’s economic growth to accelerate to 5.5% in 2024, marking the highest rate in three years. This follows a modest growth of 2.9% in 2023, with momentum expected to build as the nation heads into an election year.
Recent data from the Ghana Statistical Service underscores this positive trend, revealing a robust 6.9% year-on-year expansion in Q2 2024, up from 4.8% in Quarter 1.
According to the UK-based firm, while the second half of 2024 may see some moderation, election-related public spending is likely to drive household purchasing power and bolster consumer confidence, keeping private consumption resilient.
“Following strong growth of 6.9% y-o-y in Q2 2024, we now forecast that real GDP growth in Ghana will rise from 2.9% in 2023 to 5.5% in 2024,” Fitch explained
“While growth will moderate somewhat in H2, we expect that election-related public expenditure will boost household purchasing power and consumer confidence, keeping private consumption solid,” It continued.
Looking ahead, Fitch forecasts growth to ease to 4.4% in 2025 as the incoming administration prioritises fiscal tightening in line with Ghana’s ongoing IMF program.
This forecast highlights the delicate balance Ghana’s economy will face between maintaining growth and adhering to fiscal discipline.
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