Ghana: Economy decelerates in Q2 2016
September 28, 2016
In the second quarter of 2016, GDP expanded 2.5% over the same quarter of the previous year. The figure marked a considerable slowdown over the revised 4.8% growth observed in Q1 (previously reported: +4.1%) and marked the lowest expansion in eight quarters.
According to the Ghana Statistical Service (GSS), Q2’s deceleration was mainly driven by a sharp drop in the industrial sector, which more than offset the expansion in both the agriculture and services sectors. The industrial sector swung from a 1.4% annual expansion in Q1 to a 5.0% contraction in Q2, marking the lowest reading since Q4 2007. Growth in the services sector slowed from 7.1% in Q1 to 6.0% in Q2. On a positive note, the agricultural sector expanded at its fastest pace in six quarters, picking up from a 3.5% increase in Q1 to a 4.1% expansion in Q2.
Author: Andrea Vetrugno, Economist