Fitch Solutions, a research company from the UK, believes that inflation in Ghana is going to drop from an average of 22.9% in 2024 to 18.8% in 2025. They think this is because global oil prices are getting lower and there will be more food available.
When oil prices go down, it helps the National Petroleum Authority (NPA) to keep or even lower the prices at the gas station. This means people will have more money to spend on other things, which is great for everyone!
Fitch Solutions said, “Household consumption will remain the engine of economic growth in the coming quarters as inflationary pressures ease.” This means that as prices go down, people will buy more stuff, which helps the economy grow.
The report also mentioned that Ghana will be getting more agricultural imports, like wheat and rice. This should help lower food prices, making it easier for families to buy groceries. Plus, high gold prices are expected to help the Bank of Ghana have more money in reserve, which will strengthen the cedi (Ghana's currency) and help keep imported goods from getting too expensive.
All these changes will help families save money and spend more on things they need. Fitch predicts that private consumption will grow by 4.0%, which means people will be buying more, and this will help Ghana’s economy grow by 3.2 percentage points in 2025.
Fitch Solutions also thinks that inflation will go down even more, averaging 15.2% in 2026. This is good news because it means people will have even more chances to buy what they want and need.
Ghana is currently working with the International Monetary Fund (IMF) on a US$3.0 billion Extended Credit Facility program, which is expected to finish in May 2026. In the past, when these programs ended, it usually led to more spending and demand in the country.
The report pointed out that after the last IMF program ended in 2019, the budget deficit increased, which means the government spent more money. This led to a rise in domestic demand growth, which is a good sign for the economy.
In summary, things are looking up for Ghana! With inflation going down and more money in people's pockets, families can look forward to a brighter future.