Economic Review
High-frequency indicators suggest that global economic growth lost momentum to end H1 2023. Although the J.P. Morgan Global Composite Output Index posted above the neutral 50.0 mark for the fifth successive month to end the quarter, it came in at a four-month low. The data suggest the expansion in the second quarter continued to be largely driven by a vibrant service sector as lacklustre activity in the manufacturing sector persisted.
The Ghanaian economy grew at the slowest pace in almost a year in H1 2023 as fiscal tightening and high inflation weighed on output. Provisional data from the Ghana Statistical Service revealed that real GDP (Gross Domestic Product) in the three months through June 2023 expanded by 3.2% from a year earlier (y/y), compared to a downwardly revised expansion of 3.3% in the previous quarter. The deceleration in growth was primarily caused by a continued contraction (10.2%) in fixed investment amid fiscal and monetary tightening and weaker net exports.
