Ghana’s household expenditure is set for a significant boost in 2025, with a projected 2.5% year-on-year growth, according to a new report by Fitch Solutions.
This follows a modest 1.1% increase in 2024, signaling a steady post-pandemic economic recovery.
The report estimates that total household spending will reach GH¢129.7 billion in 2025, reflecting a 25.4% jump from GH¢103.4 billion recorded in 2019 before the pandemic.
Key Drivers of Spending Growth
Fitch Solutions attributes the anticipated rise in consumer spending to:
- Easing inflationary pressures, which will improve purchasing power.
- Greater cedi stability, reducing exchange rate-driven price hikes.
- A more accommodative monetary policy from the Bank of Ghana (BoG), likely supporting economic growth.
The report highlights that following Ghana’s December 2024 presidential elections, consumer confidence is already rebounding, leading to higher expenditure on both essential and discretionary goods.
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Mobile Money Transactions Reach Record High
One of the strongest indicators of increased consumer activity is the surge in mobile money transactions, which hit GH¢745.0 million in December 2024, up from GH¢678.8 million in July 2024.
While inflation has played a role in driving up transaction values, Fitch Solutions notes that the growth rate of mobile money transactions is far exceeding inflation levels, signaling a genuine rise in consumer activity.
Outlook for 2025
Fitch Solutions predicts that lower inflation and reduced debt servicing costs in 2025 will further fuel household spending growth.
With economic conditions expected to improve, consumer confidence and purchasing power will strengthen, driving higher spending across various sectors.
As Ghana’s economy continues to stabilize, households are set to benefit from increased financial flexibility, reinforcing stronger economic momentum into 2025 and beyond.
