Ghana’s economy is said to be on the path of recovery with Fitch Solutions projecting that economic growth will accelerate to 3.7% 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 economy would expand by 3% 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 are set to be on the moderate outlook, as inflation is projected to drop by 18.9% next year from 40.5% in this year.
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%. It said the economy is, however, expected to recover its potential growth by 2025.