Despite the challenges with the fiscal economy, ratings agency, Fitch, is projecting a 5.5% expansion of the Ghanaian economy this year.

It is attributing that to recovering in the industrial sector, including oil, in line with global growth recovery.

The country experienced three years of strong growth prior to 2020, largely driven by increasing oil production.

“We expect oil production to increase to 190 thousand barrels per day (kbpd) in 2022, from an estimated 160 kbpd in 2021, but to remain flat through 2023, which will limit Ghana's medium-term growth potential,” Fitch said.

Furthermore, it expects post-pandemic growth recovery to keep growth potential around 5%.

However, it expressed worry about the number of increasing Covid-19 cases, due to the Omicron wave, but noted that Omicron is not likely to significantly impact the 2022 growth rate.

“The number of Covid-19 cases has increased dramatically in January 2022, due to the Omicron wave, but hospitalisations and deaths remain below previous waves”.

Going forward, Fitch said the low level of vaccination means that Covid-19 will continue to present risks to Ghana's medium-term growth.

Economy expands by 6.6% in quarter 3, 2021

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

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

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

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