https://en.sputniknews.africa/20230420/mining-drives-ghanas-2002-q4-economic-growth-despite-crises-1058717651.html
Mining Drives Ghana's 2022 Q4 Economic Growth Despite Crises
Mining Drives Ghana's 2022 Q4 Economic Growth Despite Crises
Sputnik Africa
The economy of Ghana grew faster than forecast in the last quarter of 2022, despite inflation rate surpassing 40%, problems associated with a heavy debt burden and surging interest rates, media has reported.
2023-04-20T11:16+0200
2023-04-20T11:16+0200
2023-08-03T10:44+0200
sub-saharan africa
west africa
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mining
economic growth
international monetary fund (imf)
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Ghana's economy grew faster than forecast in the last quarter of 2022, despite inflation surpassing 40%, a heavy debt burden and surging interest rates, media has reported. Government statistician Samuel Kobina Annim told media that Ghana's gross domestic product (GDP) registered 3.7% growth in the three months through December last year, compared with growth of 3.1% in the previous quarter. It was noted that preliminary estimates suggested that the growth would be less than 3% - about 2.6% - but it managed to beat expectations. Annim explained that the economic growth was largely driven by upward trends in mining and quarrying, which increased by 13.4% in the fourth quarter of 2022 from the previous year. He also mentioned a major contribution of other sectors, including information and communications, and agriculture. Ghana is Africa’s largest gold producer. The mining sector plays an important role in the country's economy, as it generates over one-third of all export revenues, making a large contribution to GDP and employment.However, according to Ghana Statistical Service data, the overall economic growth slowed to 3.1% last year from a revised 5.1% a year earlier. This figure is slightly below International Monetary Fund’s estimate of 3.2% and the Finance Ministry's 3.7%. In December, Ghana defaulted on its external debts. Earlier last year, the country requested a restructuring of its bilateral debts through the G20's Common Framework for Debt Treatments. The West African nation is currently working to restructure most of its public debt, estimated at 576 billion cedis ($49 billion) as of November 2022. Under the program, Ghana will receive a $3 billion rescue loan from the IMF. It is expected that the public debt from an estimated 105% of GDP in 2022 will be cut to 55% by 2028.
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west africa,ghana, economic growth, inflation, economic crisis, debt restructuring, mining sector, gold
west africa,ghana, economic growth, inflation, economic crisis, debt restructuring, mining sector, gold
Mining Drives Ghana's 2022 Q4 Economic Growth Despite Crises
11:16 20.04.2023 (Updated: 10:44 03.08.2023) Ghana is facing persistent economic crises, with inflation reaching its highest levels in decades, causing the cost of living to soar. The situation is exacerbated by increasing debt-service payments and a falling exchange rate. However, the country's mining sector proved to be resilient amid such a turbulent time in the economy.
Ghana's economy grew faster than forecast in the last quarter of 2022, despite inflation surpassing 40%, a heavy debt burden and surging interest rates, media has reported.
Government statistician Samuel Kobina Annim told media that Ghana's gross domestic product (GDP) registered 3.7% growth in the three months through December last year, compared with growth of 3.1% in the previous quarter. It was noted that preliminary estimates suggested that the growth would be less than 3% - about 2.6% - but it managed to beat expectations.
Annim explained that the economic growth was largely driven by upward trends in mining and quarrying, which increased by 13.4% in the fourth quarter of 2022 from the previous year. He also mentioned a major contribution of other sectors, including information and communications, and agriculture.
Ghana is Africa’s largest gold producer. The mining sector plays an important role in the country's economy, as it generates over one-third of all export revenues, making a large contribution to GDP and employment.
However, according to Ghana Statistical Service data, the overall economic growth slowed to 3.1% last year from a revised 5.1% a year earlier. This figure is slightly below International Monetary Fund’s estimate of 3.2% and the Finance Ministry's 3.7%.
In December, Ghana defaulted on its external debts. Earlier last year, the country
requested a restructuring of its bilateral debts through the G20's Common Framework for Debt Treatments. The West African nation is currently working to restructure most of its public debt, estimated at 576 billion cedis ($49 billion) as of November 2022. Under the program, Ghana will receive a $3 billion rescue loan from the IMF. It is expected that the public debt from an estimated 105% of GDP in 2022 will be cut to 55% by 2028.
