Fitch Solutions adjust upwards Ghana’s GDP growth rate for 2024 to 4.3%
Fitch Solutions has adjusted its forecast for Ghana’s real GDP growth in 2024 to 4.3%, up from the previous estimate of 3.8%.
The firm also anticipates a 4.5% growth rate for 2025.
The 2024 GDP growth rate revision by Fitch Solutions is attributed to an unexpectedly strong increase in economic activities anticipated in the next two quarters of 2024.
Fitch Solutions predicts that economic growth in the upcoming quarters will significantly outperform the previous two years.
While inflation remained high in Q1 2024, averaging 24.2%, it is expected to decline to 19.5% by the end of the year due to statistical base effects.
This reduction in inflation, coupled with increased government spending ahead of the December general elections, is expected to boost consumer activity and domestic demand.
Despite elevated interest rates resulting from the Bank of Ghana’s rate hikes between 2021 and 2023 (totaling 1,550 basis points), improved business confidence is anticipated to lead to stronger corporate investment.
The Ghana Statistical Service reported on June 18, 2024, that real economic growth accelerated to 4.7% year-on-year in Q1 2024, up from 3.8% in Q4 2023.
This represents the fastest expansion in over two years, driven by 6.8% growth in the industrial sector, particularly in mining, quarrying, and oil and gas operations.
From an expenditure perspective, growth was primarily fueled by a 13.8% increase in fixed investment and an 11.2% rise in private consumption.
