"Ghana: Household spending to average 4.7% per year; to be the 5th largest in SSA \u2013 Fitch Solutions"

" \n Ghana: Household spending to average 4.7% per year; to be the 5th largest in SSA \u2013 Fitch Solutions \n \n\n \n Fitch Solutions, the research arm of credit rating agency, Fitch Ratings, has projected Ghana\u2019s household spending to become the fifth (5 th ) largest in Sub-Saharan Africa (SSA). \n \n\n \n The projection according to the research agency is on the back of an anticipated average 4.7 percent growth in household spending between 2021 and 2025. \n \n\n \n \u201cWe forecast Ghana\u2019s household spending to be the fifth largest in Sub-Saharan Africa in 2021, and to grow by an average 4.7% per year between 2021 and 2025,\u201d noted Fitch Solutions. \n \n\n \n According to the research agency, the strong household spending will result in a robust trade outlook for the country as it expects import of goods to grow by an annual average of 6.7 percent between 2021 and 2025. \n \n\n \n \u201cGhana will benefit from a robust trade outlook, as we forecast goods imports (USD) to grow by an annual average of 6.7% between 2021 and 2025. This strong growth will likely be supported by Ghana\u2019s ambitions to become a gateway to the region\u2019s hinterland and by strong household spending,\u201d stated Fitch Solutions. \n \n\n \n The strong household spending is likely to be due to a strong rebound in the Ghanaian economy and recovery from the Covid-19 pandemic due to the pickup in economic activities. \n \n\n \n The 33 percentage points Composite Index of Economic Activity (CIEA) recorded by the Bank of Ghana (BoG) at the end of May this year is indicative of the pickup in demand of goods and services and spending by households. \n \n\n \n Meanwhile, construction activity in the country according to Fitch Solutions will remain heightened on the back of a well-stocked pipeline of planned road construction projects in the country. \n \n\n \n The agency has therefore advised International construction firms to take a keen interest in the nation\u2019s road construction sector given the\u00a0substantial number of\u00a0 unpaved roads \u00a0and the demand for maintenance, upgrading and construction of roads by Ghanaians. \n \n\n \n \u201c Ghana has one of Sub-Saharan Africa\u2019s longest existing roads networks, ranking among the region\u2019s top five. The high level of current construction activity is highlighted by the large number of road infrastructure projects currently under construction in Ghana. A well-stocked pipeline of planned road construction projects indicates that construction activity in the sector will remain heightened,\u201d \u00a0 said Fitch Solutions in its recent analysis of the country\u2019s road infrastructure. \n \n\n \n According to Fitch Solutions, the\u00a0 risk profile of Ghana\u2019s construction sector\u00a0 particularly the road construction sub-sector, is attractive compared with\u00a0its peers on the continent. \n \n\n \n Read: Namibia: IFC provides $50 million facility to Letshego to increase access to affordable housing \n \n\n \n The sector\u2019s attractive risk profile the research agency notes, is supported by an open competitive landscape, availability of cost-effective labour, and wide access to development funding. \n \n\n \n Ghana Industry Risk Profile Outperforms Many Economic Peers \n \n\n \n SSA \u2013 Industry Risk Score & Construction Industry Value, USDbn \n \n\n \n \n \n\n \n Access to infrastructure construction and financing opportunities in Ghana is widened by an open competitive landscape. Ghana\u2019s construction industry is the most diverse in Sub-Saharan Africa, hosting contractors of more distinct nationalities than any other market in the region. \n \n\n \n \u201cA comparatively low number of Chinese- and French-held shares of key construction roles enables the diversity of the construction competitive landscape to translate into significant opportunities for a wide range of international construction firms,\u201d remarked Fitch Solutions. \n \n\n \n Adding international construction firms currently active in Ghana\u2019s road construction sector benefit from a comparatively attractive labour market, characterised by a large, expanding workforce, strong female participation, and low labour costs. \n \n\n \n The agency however, warned international construction firms that they face risks of high severance pay requirements for labour and rigid wage determination structures, all which limit firms\u2019 flexibility in adjusting their labour requirements in response to economic shocks. \n "

"Ghana: Household spending to average 4.7% per year; to be the 5th largest in SSA \u2013 Fitch Solutions"

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