Ghana: GDP growth records best reading since Q1 2020 in the second quarter
September 25, 2021
According to data released by the Ghana Statistical Service, GDP growth accelerated to 3.9% year-on-year in the second quarter, gaining steam from the 3.1% expansion logged in the first quarter and marking the fastest increase since Q1 2020.
Q2’s improvement came despite largely unchanged Covid-19 restrictions throughout the period. The agricultural sector gathered momentum, growing 5.6% in Q2 (Q1: +4.3% yoy), while growth in the services sector accelerated to 11.0% from 4.0% in the previous quarter. That said, the industrial sector contracted 4.3% annually in the second quarter, contrasting the first quarter's 1.3% increase and weighing on the overall improvement somewhat.
On a seasonally-adjusted quarter-on-quarter basis, economic growth gained steam in Q2, rising to 0.9% from 0.8% in the previous quarter. The reading also marked the strongest increase since Q1 2020.
Looking ahead, GDP growth is expected to have picked up pace in Q3 amid an accelerating vaccine rollout and looser Covid-19 restrictions, but it should slow somewhat in Q4 due to a less favorable base effect. The Bank’s recent decision to hold rates steady will likely support economic activity going forward.