Fitch Solutions projects a strong recovery for Ghana’s economy in its April 2024 Sub-Saharan Africa Macroeconomic Update, following two challenging years.
While the World Bank forecasts a 2.9% growth rate, the UK-based firm predicts a more optimistic 3.5% expansion for Ghana in 2024.
Senior Country Risk Analyst at Fitch Solutions, Mike Kruiniger, observed that signs of economic revival are emerging, attributing the rebound to increased consumer spending driven by easing inflation.
He highlighted the growth experienced in the final quarter of 2023, fueled by improvements in the agriculture sector and heightened services activity.
Looking ahead to 2024, Kruiniger expects continued growth, although still below pre-pandemic levels. He emphasized the potential impact of the election year on government spending, anticipating increased efforts to improve public welfare before the December 2024 polls.
Despite the Bank of Ghana’s initiation of a monetary easing cycle with a 100 basis points rate cut in January 2024, followed by a rate hold in March 2024, Kruiniger suggested that further interest rate cuts could be on the horizon to stimulate economic activity. However, he cautioned that subdued credit uptake might lead businesses to temporarily postpone expansion plans.