Ghana's economy expands by 5.4% in 2021, fastest growth recorded in two years - Bloomberg

Ghana's economy to bounce back gradually to appreciable level - Bloomberg predicts

Ghana's inflation rate for March 2022 hits 19.4 percent - GSS

Governmment implements revenue mobilisation and expenditure cut measures

Global financial and economic experts, Bloomberg have reported how the Ghanaian economy registered a remarkable GDP growth at the end of last year, only for external factors to hit the economy hard in the first quarter of 2022.

In the latest report published on Wednesday April 20, Bloomberg said Ghana’s GDP growth in 2021 exceeded forecasts by the government and the International Monetary Fund (IMF).

"Ghana’s economy grew at the fastest rate in two years in 2021, beating forecasts by the government and the International Monetary Fund after a better-than-expected fourth quarter,' the report stated.

"Gross domestic product grew 5.4% last year after expanding a revised 0.5% in 2020," the report continued, also quoting government statistician Samuel Kobina Annim.

According to the Bloomberg report, the 5.5 growth compares with a Finance Ministry estimate of 4.4%, and an IMF projection for 4.2% growth.

It added that "GDP expanded 7% in the three months through December from a year earlier, compared with a revised 6.5% growth in the prior three months. The growth rate exceeded the 4% median estimate of six economists in a Bloomberg survey. Growth in the fourth quarter was buoyed by the agriculture and services industries."

The remarkable economic recovery at the end of 2021 - from the dire effects of the COVID-19 pandemic, however, suffered a major jolt in the first quarter of 2022.

With an unexpected Russia-Ukraine war hitting global markets, the Ghanaian economy was also not left out with the Cedi unusually plummeting against the US Dollar at a fast pace.

In response to mitigate the situation, government, since the start of the year [2022], has announced series of measures, including expenditure cuts, passage of the E-Levy, among other interventions.

Aleady, government's measures appear to be having a positive impact, with the Cedi, for instance, gradually regaining considerable strength and stability against the US dollar.

Meanwhile, Bloomberg further reports and predicts that it will take the government a little while to bounce the economy back to appreciable level from the current global supply shocks caused bybthe Russia-Ukraine war.

According to Bloomberg, the supply shocks, "caused by the war in Ukraine are fanning inflation, which surged to a more than 12-year high in March, and is almost double the top of the central bank’s target of 6% to 10%. Business sentiment slumped to 47.2 last month, its lowest level since May 2020, stuck below the 50 mark that implies a contraction, according to a survey of purchasing managers by S&P Global."

The report, quoting a financial expert also forecasts that after Ghana recovered from the global recession in 2020, another global crisis may lead Ghana into a “double-dip” slowdown this year, and “it is likely to be several years before it enjoys annual economic growth in excess of 5% again."