Fitch Solutions predicts Ghana’s economy to rebound by 3.5% in 2024

Fitch Solutions, in its April 2024 Sub-Saharan Africa Macroeconomic Update, anticipates a promising recovery for Ghana's economy after enduring two challenging years.

Contrary to the World Bank's projection of 2.9% growth, the UK-based firm predicts a 3.5% expansion for Ghana in 2024.

Senior Country Risk Analyst at Fitch Solutions, Mike Kruiniger, noted that signs of economic revival are becoming

Read full articleevident, attributing the rebound to improved consumer spending fueled by easing inflation.

He emphasized the significance of the growth witnessed in the last quarter of 2023, driven primarily by enhancements in the agriculture sector and increased activity in services.

Looking ahead to 2024, Kruiniger highlighted expectations for continued growth, albeit still below pre-pandemic levels. He underscored the potential impact of the election year on government spending, anticipating a surge in efforts to enhance public welfare ahead of the December 2024 polls.

Although the Bank of Ghana initiated a monetary easing cycle by reducing its policy rate by 100 basis points in January 2024, followed by maintaining it in March 2024, Kruiniger suggested that further interest rate cuts could be on the horizon to stimulate economic activity. However, he cautioned that credit uptake might remain subdued, leading businesses to delay expansion plans temporarily.