GHANA’S economic growth experienced a slight slowdown in the second quarter, recording a year-on-year growth rate of 3.2 percent, according to the country’s statistics agency. This followed a revised downward figure of 3.3 percent for the first quarter, as Ghana grapples with one of its most severe economic crises in a generation, largely driven by spiralling public debt.
Ghana had entered into a $3bn, three-year loan programme with the IMF in May to address its economic challenges.
The government had previously projected a slowdown in economic growth, forecasting it to be 1.5 percent for this year, down from 3.1 percent in 2022. The first-quarter growth rate was also revised downward from a previous estimate of 4.2 percent, as reported by the Ghana Statistical Service.
Despite the challenges, several sectors played a role in driving growth in the second quarter, including mining, agriculture, health, transport, and information technology. Agriculture saw substantial growth at 6.0 percent, while the services sector expanded by 6.3 percent. In contrast, the industrial sector contracted by 1.9 percent, with the construction sub-sector experiencing a significant decline of 11.7 percent, marking the largest drop in five years.
Additionally, the statistics agency reported a slowdown in producer inflation, which stood at 28.3 percent in annual terms for August, down from a revised 32.9 percent in July. These economic indicators reflect Ghana’s ongoing efforts to stabilise its economy amid significant challenges and the impact of its IMF loan programme.