Ghana’s economy grew by 5.7% in 2024, a significant increase from 3.1% in 2023, despite a downturn in the fourth quarter. The Services sector is the largest contributor, while declines in agriculture and mining have been noted. Government Statistician, Professor Samuel Kobina Annim, attributes the fourth-quarter drop to sector contractions, particularly in mining and the cocoa sub-sector.
According to provisional data from the Ghana Statistical Service (GSS), Ghana’s economy exhibited a growth of 5.7% in 2024, a marked improvement from the revised figure of 3.1% in 2023. This reflects a positive shift in economic performance over the past year, although caution was warranted regarding future growth prospects.
Despite overall growth, a noticeable decline was observed in the fourth quarter of 2024, when the growth rate fell to 3.6%, down from 7.2% in the prior quarter. This reduction highlights volatility within the economy and underscores the challenges that have arisen in specific sectors.
The Services sector maintained its position as the largest contributor to Ghana’s economy, accounting for 47% of the Gross Domestic Product at basic prices. In contrast, the Industry and Agriculture sectors contributed 30.8% and 22.2%, respectively, illustrating the significant role of Services in economic activity.
Professor Samuel Kobina Annim, the Government Statistician, attributed the decline in growth during the fourth quarter to contractions in various sectors, specifically mining and quarrying. He noted, “The fall in the growth rate for the fourth quarter was due to contractions within the agriculture and industry sectors of the economy.” This observation emphasizes the interconnectedness of these sectors and their influence on national economic performance.
Particularly within the Industry sector, both the Mining and Quarrying sub-sectors and the Oil and Gas sector experienced declines, shrinking by 8.2% and 8.7% year-on-year, respectively, which adversely affected overall economic growth.
Within the Agriculture sector, the cocoa sub-sector witnessed a continuous decline for four consecutive quarters, contracting by 21.4% in the fourth quarter of 2024. This trend raises concerns about the sustainability of agricultural growth and the wellbeing of related industries.
Conversely, the Information and Communication sub-sector demonstrated significant growth, emerging as a bright spot within the Services sector. Nonetheless, the Health and Social Work sub-sector faced contraction during the same period, reflecting sector-specific challenges.
In summary, Ghana’s economy showed a robust growth of 5.7% in 2024, surpassing the previous year’s performance. However, the economy faced challenges in the fourth quarter, highlighted by contractions in several key sectors. The Services sector played a pivotal role in driving growth, while declines in agriculture, particularly cocoa, and the mining sector were concerning. Policymakers may need to address these issues to sustain economic momentum moving forward.
Original Source: www.ghanaweb.com
