Ghana Economic Outlook
August 20, 2019Economic activity seems to have eased in the second quarter, after the industrial sector powered a solid expansion in the first quarter. Lackluster agricultural output likely weighed on growth in Q2, as a crop disease dampened cocoa yields in the harvest season ending in May. In addition, the average PMI for Q2 dropped slightly from Q1’s average amid softer private sector activity, while merchandise exports languished in April on a fall in oil shipments. Nevertheless, the PMI recovered in July on rising output and new orders, which, coupled with upbeat business sentiment, bodes well for business dynamics in Q3. Meanwhile, in early August the government announced higher farmgate prices for the 2019–2020 cocoa harvest, the first increase in four years. The decision followed the June–July implementation of a price floor for cocoa set by Cote d’Ivoire and Ghana, the world’s largest producers.
Ghana Economic GrowthGrowth should sustain a strong pace this year, buttressed by robust domestic demand. Household spending is expected to rebound amid higher cocoa farmgate prices, while fixed investment should recover thanks to a more accommodative monetary policy. Fiscal slippage ahead of next year’s general election poses a key downside risk to the outlook, however. FocusEconomics panelists expect the economy to expand 6.4% in 2019, which is up 0.1 percentage points from last month’s forecast, and 6.2% in 2020.
Ghana Economy Data
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|Exchange Rate||5.48||0.0 %||Sep 04|
|Stock Market||0.1||0.0 %||Sep 04|
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Ghana Economic News
September 4, 2019
The Ghana Purchasing Managers’ Index (PMI) fell to 50.7 points in August, from 51.2 points in July.
August 15, 2019
Consumer prices rose 0.6% over the previous month in July, down from the 0.8% month-on-month increase in June.
August 5, 2019
The Ghana Purchasing Managers’ Index (PMI) rose to 51.2 points in July from 50.5 points in June, which had marked the weakest reading since November 2018.
July 19, 2019
On 19 July, the Monetary Policy Committee (MPC) of the Bank of Ghana (BOG) kept its key policy rate unchanged at a five-year low of 16.00%.
July 11, 2019
Consumer prices rose 0.8% over the previous month in June, edging down from the 0.9% month-on-month increase in May.