Ghana’s economy expected to expand by 3.7% in 2024 – Fitch Solutions

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A vendor sells food at a market in Accra, capital of Ghana, March 15, 2023. (Photo by Seth/Xinhua)
A vendor sells food at a market in Accra, capital of Ghana, March 15, 2023. (Photo by Seth/Xinhua)

Ghana’s economy is on the path of recovery with Fitch Solution projecting that economic growth will accelerate to 3.7 percent in 2024.

Fitch in a report said the possible increase in growth rate will ease price pressures owing to more favourable exchange rate dynamics as consumer activity strengthens.

Fitch Solutions, however, maintained its forecast that the Ghanaian economy would expand by 3.0 percent in the 2023 financial year due to high inflation and fiscal prudence under the country’s International Monetary Fund programme, which weighs on domestic demand.

It said an increase in demand for imported goods and services would eventually lead to stronger economic activity in 2024.

However, stronger economic activity will narrow the country’s trade surplus and drag on economic growth.

According to Fitch Solutions, other economic dynamics were set to be on the moderate outlook, as inflation was projected to drop by 18.9 percent in 2024 from 40.5 per cent in 2023.

The moderate outlook, it said, was due to statistical base effects, including previous monetary tightening and more favourable exchange rate dynamics.

It projected that exchange rate would strengthen by roughly one per cent in 2024.

The World Bank projected that economic growth would slow down in 2024 at 2.8 per cent.

It said the economy was, however, expected to recover its potential growth by 2025.

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