Consumption in Ghana
Ghana - Consumption
GDP growth eases in Q1
The economy lost some steam in the first quarter amid a second wave of Covid-19 infections and the reimposition of restrictions, with GDP growth slowing to 3.1% in annual terms from 3.3% in Q4 2020. Meanwhile, in seasonally-adjusted quarter-on-quarter terms, GDP grew 0.8%. matching the prior quarter’s increase.
The quarterly slowdown was largely due to the services sector—which accounts for a large share of GDP—expanding at a more moderate pace (Q1: +4.0% year-on-year; Q4 2020: +4.6% yoy). Moreover, the agricultural sector also grew at a slower rate (Q1: +4.3% yoy; Q4 2020: +8.2% yoy). More positively, the industrial sector bounced back to growth in Q1, recording a 1.3% expansion and contrasting Q4’s 0.4% contraction. The upturn was chiefly due to strong growth in the construction and manufacturing subsectors, although overall growth was capped by a contraction in the mining and quarrying subsector.
Looking ahead, GDP growth is set to pick up pace in Q2 and Q3, as the vaccine rollout accelerates and Covid-19 restrictions are lifted, which bodes well for the recovery of domestic demand.
Commenting on the risks to the outlook, Leeuwner Esterhuysen, econometrician at Oxford Economics, noted:
“While Ghana’s economy is well diversified, it remains reliant on gold, oil, and cocoa for exports, growth, and revenues. As such, further commodity price shocks could set the recovering economy back once again. West Africa, and Ghana particularly, is currently experiencing significant disruptions in electricity generation and supply, which will further prevent various sectors from operating at full capacity. Ultimately, our short-term economic outlook for Ghana remains cautiously optimistic.”
FocusEconomics Consensus Forecast panelists project GDP to expand 4.6% in 2021, which is down 0.3 percentage points from last month’s forecast. In 2022, panelists expect GDP to grow 4.9%.
Ghana - Consumption Data
|Consumption (annual variation in %)||1.1||0.2||0.1||8.5||4.3|
5 years of economic forecasts for more than 30 economic indicators.
Source: Ghana Statistical Services
|Exchange Rate||5.70||0.0 %||Jan 01|
|Stock Market||0.1||0.0 %||Dec 31|
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September 3, 2021
The IHS Markit Purchasing Managers’ Index (PMI) came in at 49.7 in July, down from June's 51.0 and marking the worst reading in over a year.
August 15, 2021
Consumer prices rose a seasonally-adjusted 1.63% from the previous month in July, picking up from June’s 0.30% increase.
August 6, 2021
The IHS Markit Purchasing Managers’ Index (PMI) came in at 49.7 in July, down from June's 51.0, marking the lowest reading in a year.
July 27, 2021
At its meeting on 21–23 July, the Monetary Policy Committee of the Bank of Ghana (BoG) decided to keep its policy rate at 13.50%, after surprising market analysts by lowering the rate by 100 basis points at its previous meeting.
July 7, 2021
Consumer prices rose a seasonally-adjusted 1.30% from the previous month in June, picking up from April’s 0.78% increase.