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Ghana’s Economic Growth to Slow to 7.4% on Vote Dispute
Posted on: 27-Sep-2013         Source: Bloomberg
Ghana’s economic growth will probably slow to 7.4 percent this year after an election dispute curbed investment.

Expansion in gross domestic product eased to 6.1 percent in the second quarter from a year earlier, slower than the 6.7 percent pace in the first three months of the year, Philomena Nyarko, a statistician at the Ghana (GAGDPYOY) Statistical Service, told reporters today in the capital, Accra. The economy grew 7.9 percent last year, she said.

Companies slowed the pace of investment this year after opposition leader Nana Akufo-Addo challenged President John Dramani Mahama’s December election win, Deputy Finance Minister Cassiel Ato Forson said Sept. 23. The Supreme Court upheld Mahama’s election victory on Aug. 29. The International Monetary Fund says growth will slow to 7 percent this year from 8 percent in 2012.

Mining and quarrying output expanded 29 percent from a year earlier, Nyarko said. The services industry rose 9.2 percent, led by a 27.5 percent expansion in financial and insurance services, she said. Agricultural production declined 3.9 percent from a year ago.

GDP is estimated at 84.8 billion cedis ($39 billion), while per capita income is $1,667.50, Nyarko said.

The central bank left it’s key interest rate unchanged at 16 percent for a second consecutive meeting on Sept. 18 to counter sluggish economic growth and a weaker cedi. The currency gained 0.2 percent to 2.1754 per dollar at 1:13 p.m. in Accra, paring the year’s loss to 13 percent