Fitch Solutions reiterates that Ghana’s economy will reach a gradual recovery path in 2024.
But growth will still be below the pre-pandemic average of about 5%.
The UK-based company predicts gross domestic product (GDP) growth in 2024 to be close to 4.0%.
He claimed that Ghana’s growth rate in 2023 will be approximately 2.8%.
In its latest Sub-Saharan Africa macroeconomic update, CEDI revealed that a rapid easing in inflation will support Ghana’s domestic demand, while CEDI will cut some of its losses from the debt restructuring agreement.
“The worst is now behind Ghana. Over the past few months, the exchange rate has become more stable. Inflation is coming down. The government is implementing fiscal consolidation measures, and authorities are “We are in discussions with commercial and government creditors to restructure a significant portion of our debt,” said Mike Kroeniger, senior sub-Saharan Africa analyst at Fitch Solutions.
“However, the economic growth outlook for 2024 remains subdued as we forecast that GDP will expand by 3.7% in the next year, which is certainly better than the 3.0% forecast for 2023, but still Ghana’s 2015 It is below the average from 2019 to 2019,” he explained.
He said there are several reasons why he remains relatively bearish about Ghana’s 2024 outlook.
“The number one reason is that inflation is still rising. So while inflation will continue to trend downward, it will remain elevated for much of this year, and especially in the first half of 2024. What this means This means that purchasing power will be squeezed, domestic consumption will be restricted, and business activities will face headwinds.
“Reason number two is financial restrictive policies,” Kruuniger concluded.
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