Ghana’s economy gains 7.1% growth momentum on central bank’s July 2013 index
Activities in the Ghanaian economy have increased so far in 2013, gathering some growth momentum, according to a latest index by the central bank.
An update of the Bank of Ghana’s Composite Index of Economic Activity (CIEA) in July 2013 suggested that the pace of economic activities improved to 350.1, from 326.9 in July 2012.
The momentum, the Bank said, represents a year-on-year growth of 7.1%.
Industrial electricity consumption, exports, manufacturing sales, deposit money banks (DMBs) credit to the private sector, sales of cement and domestic Valued Added Tax (VAT) were the drivers of the country’s economic activities, the central bank indicated in a monetary policy statement issued September 18, 2013.
The Ghana Statistical Service (GSS) yesterday September 25, 2013 indicated that the country’s real quarterly Gross Domestic Product (GDP) growth for the second quarter of 2013 grew by 6.1% year-on-year. This was driven by the services sector, it noted.
Ghana is targeting an 8% GDP growth by end of 2013 but the Government Statistician, Dr Philomena Nyarko said the economy is expected to grow provisionally at 7.4% for the year.
The International Monetary Fund (IMF) last week trimmed Ghana’s projected growth for 2013 to 7% compared with 8% the country recorded in 2012.
“The main risks to the economy arise from a large current account deficit—projected to increase to above 13% of GDP in response to much weaker gold and cocoa prices and ongoing fiscal pressures,” the Fund stated.
It also stated the country’s inflation has risen temporarily above 11%, as a result of the significant fuel price adjustments earlier in the year.
The Bank of Ghana’s survey of consumer confidence showed lower sentiments and heightened inflation expectations as the index declined to 95.6 in August 2013 from 101.1 in June 2013.
The central bank stated that although overall business confidence index declined in the second quarter of 2013, businesses were optimistic about prospects in the third quarter.
By Ekow Quandzie