Ghana's economic growth slows to 1-year low

Highlights

• Ghana’s economy expanded at the slowest pace in almost a year in the second quarter as fiscal tightening and high inflation crimped output.
• Gross domestic product grew 3.2% in the three months through June from a year earlier, compared with a downwardly revised expansion of 3.3% in the previous quarter, per official figures.
• Growth in the quarter was driven by the mining, agriculture, health, transport, and information technology sectors.

Source:Bloomberg

Our Takeaway

Ghana, known for its gold, oil, and cocoa production, is currently facing its most severe economic crisis in decades, primarily caused by a soaring level of public debt. In May, it finalized a three-year, $3 billion loan agreement with the International Monetary Fund. The government has projected that economic growth will decelerate to 1.5% this year, down from the 3.1% recorded in 2022. Additionally, the growth rate for the first quarter has been adjusted downwards to 3.3%, revising the previous estimate of 4.2%.