Ghana: GDP falls at slower rate in the third quarter
January 21, 2021
GDP declined at a more moderate pace of 1.1% year-on-year in the third quarter, above the 3.2% contraction logged in the second quarter.
The print came on the back of stronger growth in the agricultural sector (Q3: +8.3% year-on-year; Q2: +2.5% yoy), while the contractions in the industrial and services sectors softened from 5.7% and 2.6% to 5.1% and 1.1%, respectively. Industrial output was particularly hard-hit by nosediving activity in the mining and quarrying subsector, while ongoing Covid-19 restrictions weighed on the services sector in the quarter.
On a seasonally-adjusted quarter-on-quarter basis, GDP dropped 0.3% in Q3, up from the previous quarter's 0.8% fall.
Looking at 2021, the economy is forecast to bounce back as the easing of restrictions at home and abroad strengthens domestic and foreign demand. However, growth will be partly flattered by a supportive base effect. Moreover, volatile commodity prices, deteriorating government finances and a potential further flare-up in Covid-19 cases cloud the outlook.
Author: Jan Lammersen, Economist