Fitch Holds Ghana’s 2025 GDP Growth Forecast Steady at 4.2%

Fitch Solutions Maintains Ghana’s 2025 GDP Growth Forecast at 4.2%

Economic Outlook and Key Factors

Fitch Solutions, through its subsidiary BMI, has reaffirmed Ghana’s Gross Domestic Product (GDP) growth projection for 2025 at 4.2%. This forecast slightly exceeds the government’s 4% estimate in the 2025 Budget and aligns with the International Monetary Fund’s (IMF) April 2025 Regional Economic Outlook.

Gold Prices and Export Earnings

In its Ghana Country Risk Report, Fitch highlighted that rising gold prices would offset global trade tensions, boosting Ghana’s export revenues. The report also noted that lower energy costs and strong gold performance would drive the current account surplus to a record 6.9% of GDP, supporting foreign reserves and stabilizing the cedi.

Growth Slowdown Expected

Despite a robust 5.7% growth in 2024, Fitch anticipates a slowdown in 2025 due to reduced election-related fiscal stimulus, stagnant oil production, and tight credit conditions.

IMF’s Perspective on Ghana’s Economic Stability

Stéphane Roudet, IMF Mission Chief for Ghana, emphasized the importance of economic stabilization during a media roundtable at the IMF/World Bank Group Spring Meetings in Washington, DC. He stated, “As inflation declines and fiscal deficits align with program targets, confidence in Ghana’s economy will strengthen.”

Private Sector and Investment Growth

Roudet further stressed the need for private sector involvement across multiple industries, stating, “Investment must expand beyond a single sector to drive broad-based economic resilience.” He urged the government to adhere to the $3 billion Extended Credit Facility (ECF) program to restore macroeconomic stability and debt sustainability.

Government’s Commitment to Economic Reform

Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, reiterated the government’s dedication to meeting IMF program targets while restoring creditworthiness. He announced plans for a 24-hour economy policy to tackle structural challenges, boost job creation, and foster an export-driven industrial economy.

Source: Ghana Business News

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