Ghana's Economy Grows 7.2% in Q3 2024
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Loading... - Ekuwa Mensah
- 18 Dec 2024
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Ghana's economy has shown remarkable resilience, growing by 7.2% year-on-year in the third quarter (Q3) of 2024, according to the Ghana Statistical Service (GSS). This growth marks a significant increase from the 2.2% recorded during the same period last year and is the strongest performance since pre-pandemic levels, with the last comparable growth being 9.1% in the second quarter of 2019.
On a seasonally adjusted basis, the country’s real Gross Domestic Product (GDP) increased by 1.7% in Q3 2024 compared to the previous quarter, slightly up from the 1.6% growth recorded in Q2 2024. The provisional real quarterly GDP growth rate, including oil and gas, stands at 7.2% year-on-year for Q3 2024, while the non-oil GDP growth rate is even higher at 7.7%, compared to 2.4% in Q3 2023.
The growth in productivity during the third quarter was driven by significant activities in several sectors:
- Mining and Quarrying: This sector experienced the highest growth, expanding by 17.1% year-on-year and 4.1% quarter-on-quarter.
- Information and Communications: Also saw substantial growth of 17.1% year-on-year.
- Crops: Contributed positively with a growth rate of 5.9% year-on-year.
In contrast, some sectors faced challenges:
- Fishing: This sub-sector contracted significantly, with a year-on-year growth rate of -21.7%.
- Water and Sewerage: Experienced a year-on-year contraction of -3.0%.
- Other Personal Service Activities: Also saw a decline, with a growth rate of -3.4% year-on-year.
According to Government Statistician Prof. Samuel Kobina Annim, the services sector remains the largest component of the Ghanaian economy, accounting for 42.9% of GDP at basic prices. The shares of the industrial and agricultural sectors were 32.6% and 24.5%, respectively.
The industrial sector recorded the highest real GDP growth at 10.4% year-on-year, followed by the services sector at 6.4%, while agriculture grew by 3.2%. The contributions to total year-on-year real GDP growth were led by the industrial sector, which contributed 3.4 percentage points, followed by services with 2.8 percentage points, and agriculture with 0.6 percentage points.
The overall growth of 7.2% in real GDP, measured by the expenditure approach, was driven by:
- Gross Capital Formation: 24.5%
- Government's Final Consumption Expenditure: 3.4%
- Household Final Consumption Expenditure: 3.0%
Ghana's economic growth in Q3 2024 reflects a robust recovery and highlights the resilience of key sectors such as mining, information, and agriculture. However, the significant contractions in fishing and other service activities indicate areas that require attention and support. As the country moves forward, addressing these challenges while capitalizing on growth opportunities will be crucial for sustaining economic momentum.
