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Economy projected to have expanded by 8.9% in quarter 2

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The economy is projected to have expanded by 8.9% in the second quarter of this year, even before the Ghana Statistical Service releases the growth rate data for the period.

According to accounting and auditing firm, Deloitte, the expected increase in international trade, following the easing of restrictions in most economies, is expected to drive demand for commodities, which is favourable for commodity exporting countries like Ghana.

“This, coupled with the general increase in economic activity in 2021 is expected to help achieve the targeted growth. However, a critical success factor is how well we handle the rising COVID-19 cases. A strict enforcement of COVID protocols as well as an effective roll out of COVID vaccination will sustain the economic recovery process”, it pointed out.

The economy witnessed pick-up in economic activity in the second quarter of this year, compared with the same period of last year in which there was virtually non-existent in demand and supply due to the partial lockdown and restrictions.

According to Deloitte, “initiatives such as the Ghana CARES ‘’Obaatan Pa’’ programme, which is expected to aid in the recovery of the economy post COVID and expected increase in business activity.” The government is forecasting 5 percentage points expansion in the economy this year. This is line with projections by international institutions including the Economist Intelligence Unit, Fitch Solutions and the International Monetary Fund.

The accounting and auditing firm said the general increase in economic activity this year is expected to help achieve the targeted growth.

However, it cautioned the country to be mindful of the third wave of Covid-19.

The economy recorded a 3.1% Gross Domestic Product in the first quarter of this year.

According to figures from the Ghana Statistical Services, Construction (14.2%), Manufacturing (6.1%) as well as Information and Communication (22.1%) sub sectors were the main drivers of growth for the first three months of this year.

The Agriculture sector recorded the highest growth of 4.3%.

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