Fitch Solutions predicts disinflation process for Ghana in 2023; inflation to average 18.7%

International research institution, Fitch Solutions, is forecasting a disinflation process for Ghana throughout next year.

This is due to an expected programme from the International Monetary Fund and the stabilisation of the cedi.

It expects inflation to average about 18.7% in 2023, from over 30% in 2022.

Senior Country Risk Analyst at Fitch Solutions Mike Kruiniger says these are necessary measures for economic growth.

We expect disinflation throughout 2023 as the exchange rate stabilised on an expected IMF deal. It will remain elevated at an average of 18.7%.”

“As such, it will continue to exert downside pressure on household purchasing power and corporate profit margins and thus limit economic growth”, he explianed.

He however said both Ghana’s fiscal and external accounts are under significant pressure at the moment.

But Kruinger said it expect a likely IMF programme to improve the country’s fiscal metrics.

We expect that a likely IMF deal will improve Ghana’s fiscal metrics as well as limit risks to its external position in 2023”

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