Despite the possibility of rising inflation and recent significant volatility in the cedi, Ghana’s economy is growing strongly, according to Governor of the Bank of Ghana, Dr. Ernest Addison.
Regardless of the hurdles, he claims that evidence collected by his firm so far indicates that the economy is continuing to rebound.
Dr. Addison claimed the real sector of the economy has been resilient despite the impact of the COVID-19 epidemic in an interview with Bloomberg ahead of the Monetary Policy Committee (MPC) meeting, which began yesterday, May 18th, 2022.
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“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 was 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 emphasised.”
Indeed, industries like information, communications, and technology; tourism and hospitality; and manufacturing have recovered and are growing at a rapid pace.
“Some of the data that has come in 2022 does not suggest that we are slowing down”, the Governor noted.
“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.
In 2021, the economy grew by 5.4 percent, according to GSS.
Ghana’s GDP grew by 5.4 percent in 2021, significantly more than the 0.4 percent reported in 2020, when the world economy was badly impacted by the COVID-19 epidemic.
The economy grew 6.9% without oil.
Only ten African countries have grown faster than Ghana, according to preliminary estimates from the Ghana Statistical Service. Cote d’ lvoire and Uganda were among them.
The Services sector, particularly Information, Communication and Technology (33.1%), and the Agriculture sector, including fishing, drove the robust growth rate (13.4 percent ).
In 2021, the Services sector had the greatest GDP growth rate of 9.4%.
SOURCE: myjoyonline