Fitch Solutions has maintained its 2024 growth rate forecast for Ghana at 4.3%.

This is far higher than the 2.9% projected by the International Monetary Fund and the 3.1% revised Gross Domestic Product growth by the government.

According to the London-based firm, the Ghanaian economy will grow strongly than anticipated.

It explained that consumer spending has remained robust since the first quarter of 2024, whilst the outlook of the extractive sector is promising.

Associate Director, Country Risk at Fitch Solutions, Mike Kruiniger, speaking on the Mid-Year Review for Sub Saharan Africa, said Ghana’s economy will be driven by the extractive sector, particularly oil and gas and consumer spending.

“We except economic growth to remain stronger than what we have seen in the past couple of years with the economic forecasters predicting 4.3% in 2024 and 4.5% next year”.

“And obviously key reasons why we hold in more positive outlook for the Ghanaian economy are after years of decline, Ghana's oil sector appears to be recovering. Our oil and gas team are attributing the  recovery to large oil drilling companies at the Jubilee and Ten fields [oil]”, he explained.

“While inflation remained sticky in Q1 [quarter one] 2024, averaging 24.2%, we expect that it will trend downward and reach 19.5% by the end of the year, primarily facilitated by statistical base effects. Slowing inflation, combined with stronger government spending ahead of the December general elections, will support consumer activity and boost domestic demand”, it added.

Meanwhile, Fitch Solutions expects that fixed investment will continue to recover in 2024.