Ghana’s economy grew by 5.7% in 2024, an improvement from 3.1% in 2023. However, growth fell to 3.6% in Q4 2024 from 7.2% in Q3, primarily due to declines in agriculture and industry. The Services sector accounted for the largest GDP share at 47%.
According to provisional GDP data released by the Ghana Statistical Service (GSS), Ghana’s economy experienced a growth rate of 5.7% in 2024, surpassing the revised growth of 3.1% from 2023. In the fourth quarter of 2024, however, growth declined to 3.6%, a notable drop from the 7.2% recorded in the third quarter.
The Services sector remains the predominant contributor to Ghana’s economy, accounting for 47% of the Gross Domestic Product at basic prices. This is followed by the Industry sector and Agriculture, which contributed 30.8% and 22.2% of GDP, respectively.
Professor Samuel Kobina Annim, the Government Statistician, noted that the decline in growth during the fourth quarter was due to contractions in multiple sectors, specifically mining and quarrying. He stated, “The fall in the growth rate for the fourth quarter was due to contractions within the agriculture and industry sectors of the economy.”
The Industry sector experienced significant contractions, with the Mining and Quarrying sub-sector and the Oil and Gas sector shrinking by 8.2% and 8.7% on a year-on-year basis, respectively. Furthermore, the cocoa sub-sector within Agriculture declined for the fourth consecutive quarter, showing a contraction of 21.4% in the fourth quarter of 2024.
Conversely, the Information and Communication sub-sector reported notable expansion within the Services sector. In contrast, the Health and Social Work sub-sector faced contractions during the same quarter.
In conclusion, while Ghana’s overall economic growth in 2024 was promising at 5.7%, the significant drop in growth for the fourth quarter raises concerns regarding the robustness of specific sectors, particularly in agriculture and industry. Continued monitoring of sector performance is crucial to ensure sustainable growth.
Original Source: www.ghanaweb.com
