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Ghana's economy grew 3.1% in 2022, 3.7% in fourth quarter, statistics office says

Published 04/19/2023, 06:31 AM
Updated 04/19/2023, 07:16 AM
© Reuters. FILE PHOTO: People walk on the street around Kwame Nkrumah circle in Accra, Ghana, December 2, 2016. Picture taken December 2, 2016. REUTERS/Luc Gnago

By Christian Akorlie

ACCRA (Reuters) -Ghana's economy grew 3.1% year-on-year in 2022, compared with a growth rate of 5.1% the previous year, the country's statistics agency said on Wednesday.

The West African country's gross domestic product grew 3.7% year-on-year in the fourth quarter, compared with 2.9% in the previous quarter - its worst performance since the start of 2021.

Growth for both the fourth quarter and the whole of 2022 was underpinned by services, mostly in the information and communication sub-sector.

This was followed by industry, with most growth observed in mining and quarrying, and agriculture.

Gold, oil and cocoa-producing Ghana is battling its worst economic crisis in a generation, brought by currency depreciation and growing debt coupled with high interest rates.

Inflation reached a more than two-decade high of 54.1% in December, but has since slowed, falling to 45% year-on-year in March.

The government has been unable to redress the situation and service its debt despite spending cuts and several central bank interest rate hikes.

© Reuters. FILE PHOTO: People walk on the street around Kwame Nkrumah circle in Accra, Ghana, December 2, 2016. Picture taken December 2, 2016. REUTERS/Luc Gnago

It turned last year to the International Monetary Fund (IMF), which agreed to provide a $3 billion loan conditional on debt restructuring.

Ghana's Finance Minister Ken Ofori-Atta said last week that he expected the IMF's board to approve the support package in May.

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