GITFiC projects 6.3% increase in Ghana’s GDP in 2022
The Ghana International Trade and Finance Conference (GITFiC), has projected an upward increase of Ghana’s GDP between 4.9% to 6.3% for this year.
GITFiC has attributed the projected growth to the various measures put in place by the government to raise revenue for productive activities this year.
Ghana’s real GDP in the first quarter of 2020 was GH¢43,999.5 million, this increased to GH¢45,378.1 million in 2021 representing a 5.19% increment.
In the second quarter of 2021, the real GDP recorded was GH¢39,162.2 million compared to GH¢37,710.3 million in 2020. The real GDP recorded in the third quarter of 2020, GH¢40440.3 million, increased to GH¢43,093.5 million in 2021 representing a 1.3% upward shift. The GDP in 2020 fourth quarter increased by 0.8% in 2021.
“GITFiC project an upward increase of GDP between 4.9% to 6.3% showing a surge given the previous year’s data and the various measures put in place by the government to raise revenue for productive activities in the economy”, it said.
GITFiC also indicated that Ghana’s economy has not achieved any huge success gap in the first quarter of the year despite holding hopes of appreciable growth.
GITFiC’s economic outlook appreciates the country’s economy as having evolved to become one of the resilient in the last two decades.
It also noted that Ghana’s economy was hit by the covid pandemic just like any country’s but did not do badly in managing the economy during and after the intense era of the pandemic.
“It is worth noting that the recent COVID-19 pandemic has affected Ghana’s economy just like any other economy in the world, yet, the state did not do badly in managing its economic affairs during and after the intense era of the pandemic,” it remarked in its report issued on Thursday, January 20 in Accra.
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“Following the data trend and the analysis in recent years, Ghana’s economy though might not achieve a huge gap success in the short term (first quarter, 2022) yet, will continue with appreciable growth per the subsections aforementioned in the sterilized facts.”
GITFiC stated that it expects revival in Ghana’s growth as the economy improves from the shocks of the pandemic, adding that Ghana’s oil, Gold and cocoa remains reliant for the growth of the economy.
“The Ghana International Trade & Finance Conference (GITFiC) expects an evident revival in Ghana’s growth as the economy is gradually improving from the shocks of COVID-19 and its related concomitant effects. As a well-diversified economy, Ghana’s extractive sub-sector (oil and Gold) and cocoa still remains reliant for revenue generation that anchors growth,” it said.
“The crosscutting production activities also rely heavily on flow of electricity supply. With favorable expectation in commodity price shocks and improved flow of electricity generation and supply, it added.
It also projected Ghana’s unemployment rate to hit 4.4% maximum this year lower than the 4.53% recorded last year.
“The 4.53% unemployment rate in 2020 could be partly attributed to the COVID-19 pandemic. The gradual relieve from the effects of the pandemic in Ghana, the employment policies highlighted in the 2021 budget to be implemented in 2022, among other measures to be implemented, should unemployment rate not decrease beyond the hovering figure of 4.1 in 2018 and 2019, GITFiC project maximum 4.4% unemployment rate in 2022”.
Inflation rate is also expected to drop significantly more than that of last year.
“Inflation in Ghana stood at 9.4% in December 2018 compared to 7.9% in 2019, 10.4% in 2020, and 10.6% in August 2021. Inflation, also known as consumer price inflation has its source from the consumer price index (CPI) which measures the proportionate changes in the price level of household consumption of various goods and services. The third and fourth quarters of 2020 showed an inflation rate of 10.8% and 10.1% respectively. Likewise, the first and second quarters of 2021 revealed a 10.2% and 7.9% rate of inflation to that effect”
“Per the sterilized facts highlighted above, GITFiC expect a further reduction in inflation given that 2021 saw a reduction showing considerable revival from the pandemic shocks internationally and domestically”.
“In conclusion, Ghana is still in the right direction with considerable revival from the shocks of the pandemic and other challenges hoping that the increase in taxes in various sectors in Ghana’s economy will reflect in developmental projects”, GITFiC stated.
