Fitch Solutions

18 Jul

Fitch Solutions Projects Positive Outlook For Ghana Cedi

Wontumi1BusinessCEDI, Fitch Solutions

The Ghana cedi is expected to recoup some losses against the dollar in the coming months, Fitch Solutions has revealed. According to the London-based firm, this is due to improved investor sentiment, higher dollar inflows, and easing external con­ditions, In an article dubbed “Sub-Sa­haran Africa currency round-up: greater stability ahead in second half of 2024”, it said external con­ditions would offer more support to Sub-Saharan African currencies in the coming quarters. “We expect the Ghanaian cedi to fare better in the second-half of 2024. In the year to date, the cedi has lost 19.2 percent of its value against the…

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10 Jun

Ghana, Mozambique To Record Joint Fastest Growth Rate In Furniture Spending In SSA – Fitch Solutions

Wontumi1BusinessFitch Solutions

Ghana and Mozambique will record the joint fastest growth rate in furniture spending over the medium term, with the respective markets forecast to grow around 8.4% year-on-year and 9.3% year-on-year respectively. Ethiopia will be the second largest spending market for furniture and furnishings spending, benefitting from its sizeable population, with spending forecasted to grow to about $2.5 billion According to Fitch Solutions, Ghana will record furniture spending of $781.0 million by 2027. Kenya will however spend $635.3 million with the remaining Sub Sahara Africa markets all spending less than $350.0 million on furniture and furnishing in 2027, highlighting the small…

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17 Nov

External Debt Exchange: Ghana likely To Make Positive Development With Bilateral Creditors Before End Of 2023

Wontumi1Businessdebt restructuring, external debt, Fitch Solutions, Ghana

Fitch Solutions has hinted that Ghana is likely to make progress with its bilateral debt creditors quickly with a positive development before the end of the year. According to the UK-based firm, the worst situation is now behind the country as it has made progress with fiscal consolidation and other macroeconomic indicators. In its latest Sub-Saharan Africa Macroeconomic Update, it said the country will also reach an agreement with its external bondholders by the middle of next year. Senior Analyst for Sub-Saharan Africa at Fitch Solutions, Mike Kruiniger, said Ghana is not a big creditor like Zambia, hence will not…

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09 Oct

Cedi To Appreciate By 1.0% To Dollar In 2024 – Fitch Solutions

Wontumi1BusinessCEDI, dollar, Fitch Solutions

The Ghana cedi is expected to strengthen by roughly 1.0% to the US dollar in 2024, Fitch Solutions has disclosed in its latest Country Risk on Ghana. This will make it one of the best-performing currencies in Africa during the period. According to the UK-based firm, the government will make progress regarding the restructuring of Ghana’s external debt under the G20 Common Framework by the second quarter of 2024. This it says will boost investor sentiment towards Ghanaian assets, drive capital inflows, and provide support to the cedi. “We forecast that the exchange rate will strengthen by roughly 1% in…

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28 Sep

Ghana’s Health Budget To Expand To ¢16.5Bn In 2024; Medical Devices Market To Post Double Digit Growth – Fitch Solutions

Wontumi1BusinessFitch Solutions, health budget, medical devices market

Ghana’s health budget is expected to expand to ¢16.5 billion in 2024, from ¢15.2 billion in 2023. According to Fitch Solutions, the medical device market will benefit from increasing government spending on health and economic recovery over 2024. “We believe ongoing health infrastructure projects and rollout of the National Health Insurance Scheme will continue to support increased budgetary spending on health over the coming decades as well spending on pharmaceuticals and medical devices. We further highlight recovery in Ghana’s real Gross Domestic Product in 2024 after sharp declines in 2022 and 2023 will also support private spending on medical devices…

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12 Sep

Cedi To End 2023 At ¢11.40 To A Dollar – Fitch Solutions

Wontumi1BusinessCEDI, dollar, Fitch Solutions, IMF

Fitch Solutions is forecasting that the Ghana cedi would end 2023 at ¢11.40 against the US dollar. This is lower than the ¢12.40 it predicted early in the year, at a time Ghana was yet to reach an agreement with the International Monetary Fund for a bailout package. The UK-based firm is also projecting ¢10.90 to one dollar in 2024, fuelled by expected inflows from the International Monetary Fund programme and improve investor confidence. The cedi is presently going for ¢11.53 to the dollar in the retail market and ¢11.05 to the American greenback on the interbank market. Since Ghana…

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28 Aug

Oil Prices To Stabilise Around $84 Per Barrel In 2023 – Fitch Solutions

Wontumi1BusinessFitch Solutions, John Ashbourne, Oil Prices

Oil prices are expected to stabilise at around $84 per barrel for the rest of the year. According to Global Economist, Emerging Markets at Fitch Solutions, John Ashbourne, this is influenced by developments in the global economy such as the Russian invasion of Ukraine. Speaking on “Emerging Market Monetary Policy, Understanding the Pivot”, John Ashbourne, said the prices of crude oil will, however, rise slightly in 2024. “Oil prices in dollars per barrel was a huge kick in 2022 with the Russian invasion of Ukraine. Since then, oil prices has gone down a bit, so oil prices will stabilise around…

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28 Jul

Ghana To Reach Debt Deal With External Creditors In Quarter 2, 2024 – Fitch Solutions

Wontumi1BusinessBoG, external creditors, Fitch Solutions, Ghana, Interest Rates

Fitch Solutions believes that Ghana will reach a debt deal with its external creditors in the second half of 2024. According to the UK-based firm, this should provide tailwinds to the exchange rate and further limit imported price pressures. “Indeed, we believe that Ghana will reach a debt deal with its external creditors in H224 [half-year 2024], which should provide tailwinds to the exchange rate and further limit imported price pressures”. It added that real Gross Domestic Product growth will remain well below trend on the back of fiscal consolidation efforts under the IMF programme. However, the Central Bank will…

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27 Jul

Policy Rate To Be Kept At 30% At Next MPC Meeting – Fitch Solutions Predicts

Wontumi1BusinessBoG, Fitch Solutions, policy rate

Fitch Solutions is forecasting a steady policy rate of 30.0% by the Bank of Ghana at its next meeting in September 2023. It however believes that the Central Bank will commence a monetary easing cycle in the fourth quarter of 2023, as inflation will moderate rapidly towards the end of 2023. In its latest report on Ghana, the UK-based firm said the regulator of the banking industry will cut the benchmark policy rate by 200 basis points to 28.00 percent by the end of the year. Fitch Solutions furthered that inflation will moderate rapidly in the 4th quarter of 2023…

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31 May

Fixed Investment To Grow At A Low 1.3% in 2023 – Fitch Solutions

Wontumi1BusinessFitch Solutions, fixed investment, Government Consumptions, Private Investments

Fixed investment in Ghana will grow by a subdued 1.3% in 2023, below the 2015-2019 average of 2.7%, adding 0.3 percentage points to the headline growth. According to Fitch Solutions, this is due to tighter financial conditions that will weaken activity in the real estate and construction sectors further, placing downside pressure on fixed investment growth over the year. “Fixed investment will remain subdued due to constrained access to credit amid tighter monetary conditions and the domestic debt restructuring programme. Public investment spending will also remain weak as the government reins in spending”. Since late 2021, the Bank of Ghana…

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