The rate of economic growth in the country is expected to fall slightly by 0.3% to 4.5% by the end of this year, the August 2021 edition of Fitch Solutions West Africa Monitor Report has revealed.
However, the size of the economy is expected to increase to $78.3 billion this year.
Though real Gross Domestic Product growth rate according to Fitch Solutions will slow down slightly next year, but it will still be at a healthy 4.5%, as base effects from the 2020 slowdown, as a result of the Covid-9 pandemic, fade.
This growth rate will however be slightly lower than the expected 4.8 percentage points growth rate for this year, which will be lifted by expansion in the agriculture and services sectors, particularly recovery in the hospitality sub sector.
It further pointed out that spending is likely to tick-up in the second half of the year as the economic recovery gathers momentum, resulting in greater demand-side inflationary pressures.
“We expect that the rise in private consumption and business investment in the coming months will result in robust real GDP growth of 4.8% in 2021, as against 0.4% in 2020”, it stressed.
It further said “we expect growth to accelerate in the coming months as the government further relaxes social distancing rules. Restrictions were tightened in quarter one 2021 in response to a second wave of infections, and have remained fairly stringent since then – despite the launch of the government's vaccination drive on March 1. Although the pace of vaccinations slowed in late quarter two 2021 as a result of supply and distribution challenges, we expect the programme to gain momentum in second half year of 2021, thus facilitating greater reopening and a rise in consumer and business confidence”, it explained.
Meanwhile, Fitch Solutions has revised its nominal GDP or the size of the economy for this year, from the earlier forecast of $70 billion.This will translate into per capita income of $2,466.
Comparing it with the indicators for last year, the size of the economy or the total value of goods and services produced within the economy was estimated at $72.4 billion, translating into a per capita income of 2,328 dollars.
But the country still remains the 8th biggest economy on the African continent, following Ethiopia closely, which has economic size of 93.97 billion dollars.
Latest Stories
-
President Akufo-Addo extends Easter Greetings to Ghanaians, urges safe drive
29 mins -
Government pushes for use of more local materials in housing, other infrastructure projects
1 hour -
Dr Bawumia extends Easter greetings to Christians
1 hour -
CAF Confederation Cup: ‘Ghanaians should expect victory against Stade Malien’ – Dreams FC forward Ishmael Dede
2 hours -
CAF Confederation Cup: ‘We want to go there and win’ – Karim Zito on Stade Malian clash
2 hours -
Togbe Adzie Lãkle Howusu XII endorses youth leadership as New Force Movement gains momentum
3 hours -
Public Utility Workers Union appeals to PURC to address power crisis
3 hours -
Anbariya loses another appeal in Kumasi as Appeal Court ratifies High Court ruling against the Islamic Institute
3 hours -
Highway construction health hazard: Ofankor-Pokuase-Nsawam residents appeal for dust relief
3 hours -
SuperJazzClub releases its first single of the year ‘Off’
4 hours -
Methodist Church to lobby Akufo-Addo for expedited assent to anti-LGBTQI+ Bill
4 hours -
Spare health facilities from unplanned ‘dumsor’ – Minority to government
4 hours -
Eritrea Observed World Tuberculosis (TB) Day 2024
4 hours -
Just give us ‘dumsor’ timetable to plan our operations – GMA tells ECG
4 hours -
Parliament petitions Chief Justice for an expedited hearing of cases against anti-LGBTQI+ Bill
4 hours