Ghana’s nominal GDP nears GHS 600bn in value
Data provided by the Bank of Ghana (BoG) indicates that Ghana’s nominal Gross Domestic Product (GDP) has swelled by some GHS 132.8bn in value.
Per the Central Bank’s October 2022 Summary of Economic and Financial Data, nominal GDP for this year stands at GHS 591.9bn inching closer to the GHS 600bn value mark.
This is up from the GHS 459.1bn recorded as the country’s nominal GDP for last year – 2021.
The jump in the country’s nominal GDP can be attributed to the government’s projected 5.8% GDP growth for 2022 which has however, been revised downwards to 3.7% given the current macroeconomic challenges facing the country.
Regarding the country’s public debt-to-GDP ratio, an expansion in the economy results in the narrowing of the debt-to-GDP ratio.
This is despite the increment in the value of the country’s public debt from GHS 393.4bn in June to GHS 402bn in July.
Currently, the country’s public debt as a percentage of GDP has shrunk to 68% as at end-July 2022 from the previous figure of 78% as at end-March 2022.
External and domestic debt as at end-July 2022 according to the Central Bank stood at GHS 212.1bn and GHS 190.3bn respectively – cumulatively, that amounts to GHS 402bn ($53.2bn).
Ghana’s GDP expands by 4.8% in 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.
