This is a significant improvement from the 2.9% growth experienced in 2023, and it's all thanks to a surge in consumer spending, improvements in the agriculture sector, and increased activity in the services industry.
The UK-based firm's April 2024 Sub-Saharan Africa Macroeconomic Update highlights clear indicators of economic resurgence, led primarily by robust consumer spending amid moderating inflation. In fact, the last quarter of 2023 saw a growth rate of 3.8%, thanks to these positive factors.
But that's not all. The upcoming election year is expected to further stimulate the economy, with the government likely to ramp up spending to enhance the general well-being of its citizens. Fitch Solutions anticipates a historical trend of increased government expenditure in the lead-up to elections, which could lead to even more growth in 2024.
In terms of monetary policy, the Bank of Ghana has already initiated a monetary easing cycle in January 2024 by reducing its policy rate by 100 basis points. While the rate remained unchanged in March, Fitch Solutions expects further interest rate cuts to be implemented to stimulate economic activity.
However, weak credit uptake suggests that businesses may remain cautious, delaying expansion plans in the short term.
Despite this, the overall outlook for Ghana's economy remains optimistic, with Fitch Solutions predicting a 3.5% expansion in 2024.
Some experts say this is a time to be hopeful and excited about the future of Ghana's economy.