Ghana Economic Outlook
January 23, 2018The economy experienced a momentous turnaround in 2017, escaping the grips of subdued growth in 2016 that was brought about by lower oil production coupled with a tight monetary policy stance dampening overall economic activity. Boosts to oil production amid the oil price rally, and recovering domestic demand aided by increased monetary accommodation against a backdrop of slowing inflation, helped propel annual GDP growth to 9.3% in Q3. PMI data for Q4 suggests that while private sector activity remained buoyant at the close of the year, it lost some ground compared to the previous two quarters, likely translating into a moderated pace of economic growth in the quarter. Despite the substantial strides made in 2017, the economy is still at high risk of debt distress with an elevated debt-to-GDP ratio, threatening long-term financial stability. Reigning in the heavy debt burden and putting it on a sustainable course will be one of the government’s top priorities for 2018.
Ghana Economic GrowthHigher oil production and tighter control of expenditures should lift revenues, while domestic demand should pick up amid moderating inflation, driving robust economic growth. Headwinds to the outlook stem from financial sustainability of state-owned energy enterprises and a high outstanding volume of non-performing loans plaguing the banking sector. FocusEconomics panelists expect GDP growth of 7.1% in 2018, which is up 0.3 percentage points from last month’s forecast, and project it to moderate to 6.1% in 2019.
Ghana Economy Data
5 years of Ghana economic forecasts for more than 30 economic indicators.
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Ghana Economic News
February 15, 2018
Consumer prices increased 1.4% over the previous month in January, accelerating from a 1.0% in month-on-month rise in December, and marking the highest reading since April 2017. Inflation, however, slowed to a multi-year low in the month, coming in at 10.3%, down from 11.8% December.
February 5, 2018
The Stanbic IBTC Bank Ghana Purchasing Managers’ Index (PMI) deteriorated slightly in January, dropping to 52.6 points at the beginning of the year, down from December’s 53.5 points.
January 22, 2018
An upward trend in inflation over the past three months prompted the Bank of Ghana to keep its monetary policy rate on hold at 20.00% at its first meeting of 2018 held on 22 January.
January 10, 2018
Consumer prices rose 1.0% over the previous month in December, marginally up from a 0.9% month-on-month increase in November.
January 4, 2018
The Ghanaian private sector lost some momentum in December, and this was reflected in a fall in the composite Purchasing Managers’ Index (PMI).