Economic growth has picked up since sharp Q2 contraction - Bank of Ghana

The Bank of Ghana has pointed that economic growth for Ghana has picked up since it witnessed a sharp contraction in the second quarter of the 2020.

Figures released by the Ghana Statistical Service in December 2020 showed the economy had contracted for a second straight quarter.

This meant that the value of goods and services produced in the third quarter of 2020 declined by 1.1 percent when compared to the value of goods and services produced in the same period for 2019.

However, following deliberations by the central bank’s Monetary Policy Committee to review the economy, Governor of the Bank of Ghana, Dr Ernest Addison in a statement issued on Monday February 1, 2021 indicated, “In the domestic economy, growth has picked up since the sharp contraction in the second quarter. All the high frequency indicators of economic activity have rebounded, consumer and business confidence levels are back at pre-lockdown levels, and there are indications of steady growth in private sector credit”

Additionally, the Governor noted that the renewed threat from the second-wave of the pandemic has again heightened uncertainty and could hamper the recovery process in the near-term.

Meanwhile, the central bank of Ghana has maintained its monetary policy rate at 14.5 percent owing to growth indicators rebounding and headline inflation returning to target in the second quarter of 2021.