Ghana’s economy will expand by 4.4% in 2025, lower than the anticipated 5.5% Gross Domestic Product growth in 2024.
According to Fitch Solutions, 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 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.
That said, it anticipates that the new government will emphasise fiscal tightening following the December 2024 election in line with Ghana’s International Monetary Fund Programme.
“As such, we expect the new administration to implement strategies to contain the public wage bill and introduce tax measures to improve revenue collection”.
The UK firm 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.
It however mentioned that capital formation growth was particularly weak in 2023 following the Bank of Ghana (BoG)’s rapid monetary tightening cycle.
Latest Stories
-
Alan Kyerematen paints Accra yellow in historic political march
10 mins -
2024 Elections will be free, fair and peaceful; I will hand over presidency to the peoples’ choice – Akufo-Addo
32 mins -
South Africa, Benin claim top prizes at Afrobreak Championships
5 hours -
2024/25 GPL match preview: Berekum Chelsea welcome newcomers Holy Stars to the Golden City Park
6 hours -
Jorvago serves new single ‘Waakye Seller’
8 hours -
Rex Omar’s GHAMRO leadership: Pass or fail?
8 hours -
Anlo Dukor celebrates grand durbar of Anlo Hogbetsotso Za
8 hours -
Election 2024: Akufo-Addo pledges to respect Ghanaian will
8 hours -
EPL: Antoine Semenyo stars as Bournemouth defeat Manchester City
9 hours -
Watch CCTV footage of dramatic Adabraka daylight robbery
10 hours -
EPL: Liverpool come fron behind to beat Brighton
10 hours -
EPL: Jordan Ayew late goal salvages draw for Leicester against Ipswich
10 hours -
ESCO VOLTA holds meeting to strengthen cross-border cooperation in security, development
10 hours -
Kufuor Scholar champions Agricultural Innovation through Fidelity GreenTech Challenge
10 hours -
EPL: Isak scores at home again as Newcastle beat Arsenal
10 hours