IMF maintains 6.2% growth rate for Ghana in 2022

The International Monetary Fund is maintaining its 6.2 percent forecast of the expansion of the Ghanaian economy in 2022.

This is bigger than the 4.7 percent growth rate it projected for last year.

Though it did not give reasons for the projected high Gross Domestic Product for this year, the expected increase in economic activities, following further easing of COVID-19 restrictions will trigger that.

Improved aggregate demand and supply of goods, exports as well as government and household spending will influence the expansion of the economy, which before the COVID-19 pandemic had been growing at a rate of about six per cent on the average.

In its October 2021 World Economic Report, the IMF said Ghana’s economy will grow at a rate of 6.2 percent in 2022.

This is higher than forecasts by research institutions, sighted by Joy Business. The higher growth rate indicates that businesses will be able to generate more revenue from sales and expand into the future.

Industry is expected to pick up this year, whilst the Services and Agriculture sectors are expected to consolidate their gains in 2022.

Ghana’s economy expanded by 6.6 per cent in the 3rd quarter of this year, provisional data from the Ghana Statistical Service indicated.

This is a significant increase from what was recorded during the same period last year, which was a contraction, as a result of the COVID-19 pandemic.

The main sub-sectors that expanded in quarter three of 2021 are Education (24.2%); Health & Social Works (20.5 percent ); Information & Communication (17.0 percent ); Professional Administrative & Support (16.7 percent ); Hotel & Restaurants (16.4 percent ); Public Administration &Defence, Social Security (16.3 percent ), Fishing (14.3 percent ); Real Estate (11.5 percent ); Crops (9.8 percent ).

For sectoral growth rates, the Services sector recorded the highest growth rate of 13.4%, followed by the Agriculture sector with 9.2 per cent.

However, Industry contracted by 2.0 per cent. This was as a result of contraction in the mining sub sector.

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