Ghana’s economy to expand by 2.8% of GDP in 2023, says IMF
Growth in Ghana’s Gross Domestic Product (GDP) for 2023 is pegged at 2.8%.
The projected GDP growth rate stated in the IMF’s 2022 October Sub-Saharan Regional Economic Outlook Report, is lower than the revised 3.6% growth rate for 2022.
Despite the continuous decline in GDP growth for 2022 and 2023, expansion of the Ghanaian economy is expected to commence in 2024 reaching 6.8% of GDP in 2027.
The projected 6.7% GDP growth in 2027, is indicative of the Fund’s optimism in Ghana’s economy to grow despite domestic and global headwinds.
The projected decline in GDP growth (2.8%) for 2023, is on the back of concerns of a possible global recession next year (2023).
According to the IMF and World Bank, the anticipated global recession is likely to wipe away $4trn of the world’s GDP.
The anticipated global recession, the Bretton Wood Institutions note, will be fuelled by the slowdown in the GDP growth of advanced economies.
Ghana’s 4.8% GDP growth for Q2 2022
Recorded GDP growth rate for the second quarter of 2022, is pegged at 4.8% by the Ghana Statistical Service [GSS].
According to the GSS, compared to growth in the previous quarter [1.1%], the posted 4.8% GDP growth marks a quarter-on-quarter growth of +3.7%.
Main drivers of growth, the GSS noted, were manufacturing and cocoa production.
The growth rate was driven by Manufacturing (8.8%), Crops and Cocoa (4.5%), Mining and Quarrying (4.4%), Information and Communication (12.4%) as well as the Education (13.2%) sub-sectors.
For the sectors, the Services sector (5.2%) expanded more than the national average. It was followed by Agriculture (4.6%) and Services (4.4%).
Nine sub–sectors within the Services sector recorded growth rates.
However, two contracted. They were Real Estate (-5.7%) and Professional Administrative and Support (-11.0%).
Similarly, three sub-sectors within the Agriculture sector expanded during the period. They were Fishing (7.8%), Livestock (5.8%) and Crops and cocoa (4.5%).
Forestry and Logging however contracted with a growth rate of -0.2%.
Also, Manufacturing (8.8%), Mining and Quarrying (4.4%) and Construction (0.4%) sub-sectors expanded.
However, Electricity (-2.2%) and Water Supply, Sewerage, Waste Management and Remedial Activities (-2.7%) contracted.
The Services sector continued to be the largest sector of the Ghanaian economy in the second quarter of 2022 with a share of 45.8% of GDP. The GDP share of Industry and Agriculture were 32.1% and 22.1% respectively.
In the Fund’s newest World Economic Outlook report, the Fund expressed worry that countries like Ghana will be affected by happenings in other developed economies as growth in those countries are expected to contract.
It warned that moves by Central Banks in developed countries to check inflation with further tightening will impact on economies like Ghana, as well as developments in Russia and Ukraine.
The Economic Outlook Report christened “Countering the Cost of Living” also warned that the worse is yet to come, warning that countries could face challenges.
