Ghana’s economy grew by 5.7% in 2024, surpassing the 3.1% growth from 2023. However, the fourth quarter saw a decline to 3.6%. The Services sector led contributions at 47% GDP, while Mining and Agriculture faced significant contractions. Cocoa experienced a 21.4% decline for the fourth consecutive quarter, contrasting with growth in Information and Communication.
The Ghana Statistical Service (GSS) has reported that Ghana’s economy achieved a growth rate of 5.7% in 2024, which surpasses the revised growth rate of 3.1% recorded in 2023. Despite this overall growth, the final quarter of 2024 experienced a decline, with the growth rate dropping to 3.6%, a reduction from the 7.2% observed in the third quarter.
The most significant contributor to Ghana’s economy remains the Services sector, which represents 47% of the Gross Domestic Product (GDP) at basic prices. Following this sector, the Industry and Agriculture sectors accounted for 30.8% and 22.2% of the economy, respectively. This data illustrates the ongoing importance of services in sustaining economic performance.
Professor Samuel Kobina Annim, the Government Statistician, noted that the decline in fourth-quarter growth was mainly due to contractions within the agriculture and industry sectors. 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.”
Particularly within the Industry sector, both the Mining and Quarrying sub-sector and the Oil and Gas sector faced downturns, with year-on-year contractions of 8.2% and 8.7%, respectively. These declines significantly influenced the overall economic performance of Ghana. Moreover, the cocoa sub-sector within Agriculture continued to experience a downturn, contracting by 21.4% for the fourth consecutive quarter.
Conversely, the Information and Communication sub-sector displayed the highest growth within the Services sector. However, it is worth noting that the Health and Social Work sub-sector saw a contraction during the fourth quarter, indicating mixed performance across various sectors.
Overall, while 2024 exhibited promising growth for Ghana’s economy, significant challenges were evident in specific sectors that warrant attention and strategic intervention moving forward.
In conclusion, Ghana’s economy demonstrated a promising growth of 5.7% in 2024; however, the fourth quarter revealed vulnerabilities with a decline to 3.6%. Key sectors, such as Mining, Oil and Gas, and Cocoa, faced significant contractions that hindered growth. The Services sector continues to be the mainstay of the economy, highlighting the need for strategic focus on the declining sectors to sustain economic momentum.
Original Source: www.ghanaweb.com
