Fitch Solutions, in their latest report has revealed that the construction sector of Ghana is predicted to slow down this year, rising by 4.1 percent year on year, down from 5.7 percent in 2021.

In the report, Fitch Solutions stressed that higher government profits are expected to go toward debt repayment and the country’s enormous public payroll bill, rather than capital projects, therefore higher oil and gold prices are unlikely to boost Ghana’s infrastructure development business.

“We forecast Ghana’s construction industry to grow by 4.1% year-on-year in 2022, a slowdown compared to the estimated growth of 5.7% year-on-year in 2021”.

Government capital spending is also expected to fall to 3.3 percent of Gross Domestic Product (GDP) in 2022 and 2.9 percent of GDP in 2023. When compared to capital spending in 2018-2020, when Ghana’s construction industry grew at a rate of -0.1 percent per year, this forecast is substantial. Nonetheless, when compared to the period between 2010 and 2017, this spending amount is low, since the construction industry’s average annual growth rate during that time was 8.1 percent.

Fitch Solutions, on the other hand, assessed that the country’s access to foreign credit markets will remain limited, putting a damper on public infrastructure investment and the construction industry’s expansion.

33 thoughts on “LOWER PUBLIC INVESTMENT TO SLOW DOWN GHANA’S CONSTRUCTION INDUSTRY GROWTH – FITCH SOLUTIONS”
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