Ghana is expected to maintain an average unemployment rate of 4.0% throughout 2024, according to a recent report by Fitch Solutions. This rate is anticipated to hold steady in both 2025 and 2026, indicating a period of relative stability in the labor market. The report reveals that Ghana's unemployment rate has been experiencing a gradual increase since 2017 and is projected to follow this trend in the foreseeable future.

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Key factors contributing to this issue include the country's low life expectancy, which stands at approximately 64.3 years. This is linked to insufficient government expenditure on healthcare and a high prevalence of water-borne diseases and chronic illnesses like HIV/AIDS. Another critical challenge highlighted is the shortage of highly skilled workers in Ghana.

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This gap often necessitates the hiring of foreign talent to meet the demands of employers, further complicating the domestic labor market. On a broader economic scale, Fitch Solutions notes that Ghana, like many countries, is grappling with the residual effects of the Covid-19 pandemic.

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Inflationary pressures are driven by both demand-pull and cost-push factors, prompting central banks globally, including Ghana's, to enact some of the most rapid policy rate increases in history. This shift has reduced the value of debt accumulated during the low-interest rate period of 2015-2019.

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Despite reaching historic highs in household wealth, supported by strong equity market performance and rising property values, some property markets are showing signs of weakening. Additionally, the outlook for many companies is becoming increasingly negative. Fitch Solutions warns that if these economic trends persist, there could be a significant decline in consumer wealth, potentially leading to a sharp decrease in consumption.

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