Ghana's economy is showing signs of recovery, with Fitch Solutions forecasting an acceleration in economic growth to reach 3.7 percent in 2024. According to a report by Fitch, this potential increase in the growth rate is expected to alleviate price pressures, thanks to more favorable exchange rate dynamics driven by strengthening consumer activity.

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However, Fitch Solutions has maintained its earlier projection that the Ghanaian economy will expand by 3.0 percent in the 2023 fiscal year. This is primarily due to high inflation and fiscal prudence associated with the country's International Monetary Fund (IMF) program, which has an impact on domestic demand.

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The report suggests that an uptick in the demand for imported goods and services will ultimately lead to stronger economic activity in 2024.Nevertheless, the report cautions that this increased economic activity may narrow the country's trade surplus and potentially hinder overall economic growth.In terms of other economic indicators, Fitch Solutions anticipates a moderate outlook, with inflation expected to drop to 18.

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9 percent in 2024, down from 40.5 percent in 2023. This moderate outlook is attributed to various factors, including statistical base effects, prior monetary tightening measures, and more favorable exchange rate dynamics. Fitch Solutions also projects a roughly one percent strengthening of the exchange rate in 2024.On the other hand, the World Bank's projection suggests a slowdown in economic growth to 2.8 percent in 2024.

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However, it anticipates a return to potential growth by 2025 as the economy continues to recover.

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