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Ghana's economy growing strongly, data suggests fast pick-up – Governor

Dr Ernest Addison 480x430 1121212 Dr. Ernest Addison is Governor of Bank of Ghana

Thu, 19 May 2022 Source: www.ghanaweb.com

Inflation hits 23.6%

Economy growing by 5.4%

MPC meeting begins today


Governor of the Bank of Ghana, Dr. Ernest Addison has noted that even though inflation keeps increasing and the cedi remains unstable, the economy is growing strongly.

He noted that the economy is rebounding from the devastating effects of the COVID-19 pandemic according to data gathered by the Central bank.

Dr. Addison was speaking to Bloomberg ahead of the Monetary Policy Committee (MPC) meeting, which began on 18th May 2022 to 20th May 2022.

“The Ghanaian situation in a sense also reflects what happened in 2020 where the government took a very expansionary stance on policy. Therefore, there were many interventions that were put into place in order to protect lives and livelihoods.”

“The impact of that was real sector being more resilient than we see in other places. As I said, we are beginning to see a pick-up in growth in 2021”, Dr. Addison emphasized.”

Reports have indicated that sectors such as Information, Communications, and Technology; Tourism and Hospitality; Manufacturing have recorded strong growth rates and are growing steadily.

“Some of the data that has come in 2022 does not suggest that we are slowing down. I believe, if we were to choose between growth and inflation, the policy priority should be managing the pace at which prices are increasing”, he added.

The Ghana Statistical Service (GSS) report on the Gross Domestic Product for 2020 and 2021 shows that the economy has expanded more than was anticipated.

According to the GSS data released on April 20, 2022, real GDP expanded by 7 percent in the fourth quarter of 2021 compared to the 4.3 percent growth recorded in the corresponding period of 2020. Similarly, non-oil real GDP in the fourth quarter of 2021 expanded by 7.6 percent compared to 5.7 percent for the same period in 2020.

On an annual basis, the provisional real GDP growth for 2021 showed a positive outturn of 5.4 percent, exceeding the 4.4 percent 2021 projected outturn by 1 percentage point and the Sub-Sahara Africa average growth by 0.9 percentage point.

An indication that the economy is on the rebound post the COVID-19 pandemic, which saw a revised growth rate of only 0.5 percent in 2020.

The non-oil real GDP according to the GSS data has also expanded from 1.0 percent in 2020 to 6.9 percent in 2021 - the highest non-oil real GDP growth rate since the rebasing was done in 2013 - exceeding the target of 5.9 percent for the period.

Source: www.ghanaweb.com
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