Ghana GDP Expands 5.3% in Q2
The Ghanaian economy advanced 5.3 percent year-on-year in the second quarter of 2014, slowing from a 6.5 percent increase in the previous quarter. It is the lowest growth rate in three quarters as the industrial sector slumped.
10/23/2014 4:25:45 PM
Industrial production contracted 0.5 percent year-on-year. Manufacturing shrank 10.9 percent and construction fell 1 percent. The agricultural sector recorded the highest growth rate (up 8.5 percent), accelerating from a 7.6 percent expansion in the previous period. Livestock production expanded by 36.7 percent and forestry increased 13.5 percent. The services sector grew 2.1 percent.
In 2011 and 2010, Ghana GDP registered double-digit growth rates as the country dramatically increased its oil production. Yet, since 2013 several fiscal problems including high wages and energy subsidies led to an increase in government budget deficit and raising public borrowing costs. In addition, the Cedi depreciated more than 38 percent in the first nine months of 2014 putting pressure on import prices and increasing the inflation rate. The government already cut its 2014 growth forecasts to 6.9 percent from 7.1 percent and started talks with the IMF for a bailout program which will include several fiscal reforms.
On a quarter-on-quarter seasonally adjusted basis, the economy increased 3.3 percent in the second quarter of 2014.