Ghana Economic Outlook
April 26, 2022Growth gained traction in Q4 2021, thanks to stronger agricultural activity and a rebound in the industrial sector, with output rising at the fastest pace in two-and-a-half years in Q4. In contrast, the services sector lost momentum, although it remained sturdy overall. Turning to 2022, economic headwinds seem to be picking up. Economic activity growth weakened in January, while the PMI slipped into contractionary territory on average in Q1, suggesting that business conditions deteriorated. Moreover, the cedi has lost almost a fifth of its value against the USD so far this year, while inflation soared to an over-decade high in April, further stoked by the fallout from the Russia-Ukraine war. As rising prices are likely to curb private spending growth, Ghana is also facing a looming debt crisis, with government plans to cut spending and introduce new taxes boding poorly for activity ahead.
Ghana Economic GrowthGrowth should remain upbeat into 2022, chiefly thanks to stronger investment and private spending growth. That said, risks to the outlook appear increasingly skewed to the downside: Soaring inflation and a depreciating currency threaten to dampen private sector activity and cap household consumption growth, while a heavy debt burden bodes poorly for fiscal stability. FocusEconomics panelists project the economy to expand 4.8% in 2022, which is down 0.2 percentage points from last month’s forecast, and 4.9% in 2023.
Ghana Economy Data
5 years of Ghana economic forecasts for more than 30 economic indicators.
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|Exchange Rate||5.70||0.0 %||Jan 01|
|Stock Market||0.1||0.0 %||Dec 31|
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Ghana Economic News
May 11, 2022
Consumer prices rose a seasonally-adjusted 5.17% in April over the previous month, picking up from the 4.02% increase logged in March.
May 5, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 48.3 in April, up from March's 47.2.
April 13, 2022
Consumer prices increased a seasonally-adjusted 4.05% from the previous month in March, accelerating from February's 2.33% rise.
April 6, 2022
The S&P Global Purchasing Managers’ Index (PMI) came in at 47.2 in March, down from February's 49.6.
March 21, 2022
At an unexpected meeting on 21 March—the meeting was originally scheduled for 23–25 March—the Monetary Policy Committee of the Bank of Ghana (BoG) decided to hike its policy rate by 250 basis points to 17.00%.