Ghana’s Consumer Spending to Reach GHS 129.7 Billion in 2025 on Cooling Inflation – Fitch Solutions
Real household spending in Ghana is expected to grow by 2.5% year-on-year in 2025, marking a recovery from the modest 1.1% growth recorded in 2024, according to Fitch Solutions.
The improved growth will drive total household spending to GHS129.7 billion (at constant 2010 prices), representing a 25.4% increase over the pre-pandemic level of GHS103.4 billion recorded in 2019.
Key drivers underpinning the forecast include easing inflationary pressures and expected stability in the local currency, which Fitch believes will create room for a more accommodative monetary policy stance by the Bank of Ghana (BoG).
The projected rebound in consumer spending aligns with Fitch’s broader macroeconomic outlook, which anticipates real GDP growth of 4.2% year-on-year for Ghana in 2025.
According to the agency, Ghanaian households will benefit from this improved growth environment, with potential upside in consumption supported by lower inflation and stronger cedi performance.
However, Fitch cautions that the consumer outlook remains clouded by significant macroeconomic headwinds. Persistent inflationary pressures, volatile interest rates, trade tensions, and risks of labour market softening pose downside risks to household consumption—especially discretionary spending.
“Geopolitical tensions and economic uncertainty will continue to weigh on consumer sentiment, limit wage growth, and affect business confidence,” Fitch noted. The agency further warned that many households have yet to see a meaningful recovery in real purchasing power, which remains weakened by the inflationary shocks of 2022 to 2024.
While price levels have begun to stabilise, the lag in real wage growth suggests that households may remain cautious in their spending patterns, even as macroeconomic indicators point to a gradual recovery.
