Ghanaian households are set to experience a boost in spending power in 2025, with real household expenditure expected to grow by 2.5% year-on-year, according to Fitch Solutions.
This follows a modest 1.1% increase in 2024, signaling a steady economic recovery.
Total household spending is projected to reach GH¢129.7 billion, marking a 25.4% rise from the pre-pandemic level of GH¢103.4 billion recorded in 2019. Fitch Solutions attributes this positive outlook to easing inflation, a more stable cedi, and supportive monetary policies from the Bank of Ghana.
Economic Recovery Driving Consumer Confidence
The research firm highlights that post-election economic stability is already fostering increased consumer activity. The reduction in inflationary pressures and a stronger cedi are expected to restore purchasing power, encouraging growth in both essential and discretionary spending.
“We will see an improvement in Ghanaian household spending over 2025, as households rally from elevated inflation and cedi weakness. With cooler levels of price growth and a dovish approach from the Bank of Ghana, households will see a marked uptick in purchasing power,” Fitch Solutions stated.
Mobile Money Transactions Surge
A key indicator of rising consumer activity is the surge in mobile money transactions, which hit an all-time high of GH¢745.0 million in December 2024, up from GH¢678.8 million in July 2024. This growth reflects increasing financial transactions, particularly following the December 2024 presidential elections.
While inflation continues to impact spending, Fitch Solutions noted that the increase in mobile money transactions surpasses inflation rates, further signaling a consumer recovery trend.
Outlook for 2025: Lower Inflation, Higher Spending
Fitch Solutions predicts that lower inflation in 2025 will further drive household spending and financial transactions, as reduced debt servicing costs and stable economic conditions provide relief to consumers.
With these factors in play, Ghana’s economy is expected to witness a stronger rebound in consumer spending, contributing to overall economic growth in 2025.
