Ghana’s economy has shown impressive resilience. The most recent data from the Ghana Statistical Service (GSS), which was released on June 18, 2024, indicate strong agricultural, service, and industrial performance. The country’s Gross Domestic Product (GDP) grew by a substantial 4.7% in the first quarter of 2024, marking a significant year-on-year increase of 0.5 percentage points.
Samuel Kobina Annim, the GSS government statistician, disclosed the data at a press briefing. He mentioned that the industry sector showed the highest growth at 6.8%, followed by the agriculture sector at 4.1% and the services sector at 3.3%.
The Growth Rate of Ghana’s Star Performer for 2024 Q1
The industry emerged as the star performer, recording the highest growth at 6.8%, driven by robust mining, quarrying, and construction activities. This surge in industrial output underscores Ghana’s efforts to diversify its economy and reduce its reliance on the export of primary commodities.
The mining and quarrying industry saw the fastest growth, at 12.9% year-on-year and 3.0% quarter-on-quarter when adjusted for seasonal changes. In contrast, the electricity industry experienced a growth rate of -7.5% year-on-year and -2.2% quarter-on-quarter when adjusted for seasonal changes. The mining and quarrying industry contributes 38.6% of the industry’s total nominal GDP and 38.1% of its real GDP.
In 2024, the industry sector has expanded Ghana’s economy by:
- Leveraging strategic industries to anchor the growth of the manufacturing sector
- Implementing the 1D1F program to attract investments and create job opportunities
- Aiming to become the regional manufacturing hub for West Africa through the Growth Strategy and investment facilitation efforts.
How Is The Agriculture Sector Expanding Ghana’s Economy?
The agriculture sector also contributed to the country’s economic momentum, expanding by 4.1%, with the crops subsector leading the charge. This growth is a testament to the government’s unwavering focus on boosting agricultural productivity, which gives us optimism about the sector’s future.
The agriculture sector in Ghana is expanding the economy by increasing productivity and incomes through modernization efforts, promoting private sector investment, and diversifying crops and livestock. Initiatives such as the Planting for Food and Jobs program aim to boost commercial production, create job opportunities, and enhance food security. Additionally, expanding irrigation infrastructure and mechanization efforts are expected to put more hectares under cultivation, further contributing to economic growth.
The government plans to provide 18.4 million day-old chicks to farmers in 2024 as part of the livestock farming initiatives in Ghana. This support is expected to increase meat production and raise the net national output to 42,600MT, up from 15,000MT in 2022.
Which Regions Are Planting For Food And Jobs Being Implemented?
The Planting for Food and Jobs program is being implemented in various regions of Ghana, including the Eastern and Ashanti regions, where over 60,000 hectares of land have been secured for agricultural zones. Additionally, irrigation infrastructure development is taking place in agrarian zones such as Afram Plains Agricultural Zone 1 and 2 and Sekyere Afram Plains Agricultural Zone to expand rice, soya, and maize cultivation areas.
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What is the Outlook for the Service Sector in 2024
The services sector, traditionally the most significant contributor to Ghana’s GDP, maintained its strong performance, growing by 3.3% in the first quarter. Subsectors such as information, communication, accommodation, and food services were the key drivers of this growth.
The Information and communication industry grew the most in the Services sector, with a 17.9% year-on-year increase and a 4.2% increase compared to the previous quarter. On the other hand, the Health and Social Work sector saw a decrease of 8.8% year-on-year and 2.1% compared to the previous quarter. Information and communication Activities comprise 7.7% and 14.9% of the total nominal and real GDP of the Services sector, respectively.
General Outlook
Looking ahead, the Ghanaian government has forecasted a GDP growth rate of 3.5% for the year 2024, a testament to the country’s economic resilience and the effectiveness of its reform program, which was supported by a $3 billion loan from the International Monetary Fund.
As Ghana continues to navigate the challenges posed by the global economic landscape, the robust performance across the agriculture, services, and industry sectors underscores its ability to harness its diverse economic strengths and chart a path towards sustainable development. With strategic investments and policy interventions, Ghana is poised to solidify its position as a leading economic force in the region further.
BudgIT Ghana’s Take
Advisory Piece for the Government of Ghana and Our Readers:
Recent data from the Ghana Statistical Service (GSS) present an encouraging picture of the country’s economic performance, with robust growth across key sectors. The substantial % GDP growth of 4.7% in the first quarter of 2024 is a positive indicator of Ghana’s economic resilience.
The government of Ghana needs to continue its focus on sustaining and furthering this growth trajectory. The success of the agriculture, services, and industry sectors is commendable, and strategic investments should continue to bolster these sectors.
For our readers, it is vital to recognize and support the government’s efforts to strengthen Ghana’s economy. The collective drive towards sustainable development will require continued collaboration between the government, the private sector, and the citizens of Ghana.
In conclusion, the recent economic performance of Ghana is a testament to its ability to navigate challenges and harness its financial strengths. With sustained efforts and strategic interventions, Ghana is well-positioned to solidify its position as a leading economic force in the region.
Source: GSS First Quarter 2024 Release
Jennifer Moffatt, Country Manager