Ghana’s economy has seen a growth of 3.1% year-on-year in 2022 as per the latest report by the country’s statistics agency. However, this growth rate is comparatively lower than the previous year’s rate of 5.1%. The report also shows that the gross domestic product grew by 3.7% year-on-year in the fourth quarter, which is an improvement compared to the 2.9% growth observed in the previous quarter.
Information and Communication services are leading the growth
The services sector, mainly the information and communication sub-sector, was the primary contributor to the growth in the fourth quarter and the whole of 2022. The industry sector also contributed to the growth, primarily driven by mining and quarrying, followed by agriculture. The growth in the services and industry sectors has improved the country’s economic performance despite the ongoing economic crisis.
IMF support package expected in May
Ghana is currently facing economic crisis, caused by currency depreciation and growing debt coupled with high-interest rates. This has led to inflation reaching a more than two-decade high of 54.1% in December, which has since slowed down to 45% year-on-year in March. The government has been trying to address the situation through spending cuts and central bank interest rate hikes. Ghana has sought the International Monetary Fund’s (IMF) support, which has agreed to provide a $3 billion loan conditional on debt restructuring. The Finance Minister Ken Ofori-Atta has recently stated that he expects the IMF’s board to approve the support package in May.
In conclusion, Ghana’s economy has shown growth despite the ongoing economic crisis, primarily due to the services and industry sectors’ growth. The government have sought the IMF’s support to service their debt. With the IMF’s support package expected to be approved soon, Ghana can hope to address its economic crisis and continue to grow its economy.