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.