Economic activity will remain subdued despite the upbeat growth outturn in the first quarter of 2023.

According to GCB Capital, real sector growth will remain broadly depressed through 2023 despite the surprise 4.2% real Gross Domestic Product growth recorded in the first quarter of 2023.

The Bank of Ghana said the Composite Index of economic activity has contracted in the last seven months, driven by the slowdown in leading indicators such as port activity, cement sales, private sector credit and imports.

Again, the consumer and business confidence surveys also show mixed results, reflecting the uncertain macroeconomic climate.

With the tightening credit conditions and the slowing industrial activity, GCB Capital said growth and employment creation in the real sector could remain subdued through 2023.

Ghana’s economy beat most analysts’ forecasts, expanding by 4.2% in the first quarter 2023, the Ghana Statistical Service has disclosed.

Economy expanded 4.2% in quarter 1, 2023

The Ghanaian economy expanded by 4.2% in quarter 1, 2023, far higher than the 3.1% recorded during the same period in 2022.

According to the GSS, Public Administration, Defense & Social Security (37.6%); Health & Social Work (31.6%); Education (26.0%), and Information & Communication (18.9%) drove the growth rate.

The Services sector recorded the highest growth rate of 10.1%, followed by the Agriculture sector with a growth rate of 4.8%. However, Industry contracted by 3.2%.

Seven sub-sectors contracted in quarter one of 2023. They are Water Supply, Sewerage, Waste Management & Remediation Activities (- 6.4%); Construction (-6.0%);  Wholesale and retail trade; repair of motor vehicles and motorcycles (-5.3%);  Fishing (-3.3%);  Mining and quarrying (-2.9%);  Manufacturing (-2.5%)  and Hotels and Restaurants (-0.2%).