Fiscal consolidation in Ghana, others to gain renewed focus in 2025 – Fitch Solutions

Fitch Solutions projects renewed fiscal consolidation efforts in Sub-Saharan Africa (SSA), including Ghana, in 2025 as governments shift focus post-election spending and cost-of-living pressures ease. Despite these efforts, structural challenges will limit progress.

SSA's average budget deficit is expected to narrow from 4.3% of GDP in 2024 to 3.9% in 2025 but will remain above the 2010-2019 average of 3.2%. Structural fiscal shortfalls will persist in 27 out of 49 SSA countries, including Ghana, Nigeria, and Ethiopia.

Monetary policy is also expected to ease as average inflation declines, promoting greater regional convergence. However, country-specific issues, notably in Nigeria and Ethiopia, will keep regional inflation above the 11.4% average recorded between 2014 and 2023. Structural vulnerabilities remain a key concern for SSA economies.