© Reuters. FILE PHOTO: A general view of Makola market, one of the country’s largest malls in Accra, Ghana March 26, 2022. REUTERS / Francis Kokoroko
By Cooper Inveen and Christian Arkolie
ACCRA (Reuters) – Ghana’s economy grew 4.8% year-on-year in the second quarter of 2022, fueled by growth in the fishing, manufacturing and educational services sectors. , data from the country’s statistics agency said on Tuesday.
The gold and cocoa-producing nation, which in July said it would seek IMF support as its balance of payments position deteriorated, recorded 4.2% growth in the second quarter of 2021.
Economic growth hit 3.3% in the first quarter of this year, less than half the 7% growth in the final quarter of 2021 as the West African nation battled runaway inflation, the local currency devaluation and high public debt.
“The sharp decline we recorded last quarter has been reversed slightly,” government statistician Samuel Kobina Annim said in a press conference.
The government has blamed its woes on a combination of forces, including the COVID-19 pandemic, the war in Ukraine, as well as the economic downturn of the United States and China.
However, Annim cautions against seeing recent growth as a reversal of fortunes. The growth figures may not fully reflect the impact of Russia’s invasion of Ukraine until the third and fourth quarters of this year, he said.
“Remember that whatever happens in Ukraine in the first quarter of the year and the COVID-19 pandemic has a lot of pass-through effects,” Annim said.
He added: “If you take into account macroeconomic variables like inflation, like the exchange rate, the likelihood of a shift effect in the third and fourth quarters is very high.
Key inflation rose 10.4 percentage points year-on-year in the second quarter, while the country’s balance of payments deficit widened from about $935 million in March to nearly $2.5 billion at the end of June. .
However, the nation’s cedi currency depreciated rapidly in the second half of the first quarter, largely stabilizing throughout the second. Since then, it has continued to plunge, losing about 30% of its value against the dollar since the start of the year.