Ghana: GDP growth slows in Q2
According to provisional figures, GDP growth eased to 3.2% year on year in the second quarter, from a revised 3.3% in the first quarter. The figure was slightly below the expectations of market analysts. On a seasonally adjusted quarter-on-quarter basis, economic growth moderated to 0.7% in Q2, following the previous period’s 0.8% expansion.
The industrial sector contracted 1.9% annually in the second quarter, a less-pronounced drop than the first quarter’s 2.6% decrease. Meanwhile, the agricultural sector lost steam, growing 6.0% in Q2 (Q1: +6.4% yoy). Services sector growth was unchanged at Q1’s 6.3% in Q2.Growth in the second quarter was hampered by several factors, including the imposition of new taxes and increases in utility prices, which led to higher production costs, and frontloaded fiscal consolidation measures that are part of the country’s IMF deal.