Ghana’s economy expanded at the slowest pace in a year in the second quarter, the statistics office said.
Gross domestic product rose 3.9 percent in the three months through June from a year ago, compared with a revised 4.3 percent in the first quarter, Baah Wadieh, an official at the Ghana Statistical Service, told reporters on Friday in the capital, Accra. The economy expanded 0.9 percent from the previous quarter.
West Africa’s second biggest economy is struggling in the face of falling oil and gold prices, power shortages and tighter monetary and fiscal policy. The government was forced to turn to the International Monetary Fund in April for a loan of almost $1 billion, and plans to sell its fourth and biggest Eurobond of $1.5 billion this month to help fund its budget and bolster the currency.
The cedi has weakened 16 percent against the dollar this year, pushing the inflation rate to 17.3 percent in August. The currency gained 1.3 percent to 3.81 per dollar at 11:15 a.m. in Accra. The Bank of Ghana increased the policy rate by 1 percentage point to 25 percent last week to help bring inflation back into the target of 6 percent to 10 percent.
The government is forecasting economic growth of 3.5 percent this year, which would be the slowest pace since 1994.