ECONOMY

Ghana’s GDP growth to surpass projections

2 minutes read
Dr Mohammed is Minister of Finance

 

 

Government has indicated Ghana is poised to exceed the revised GDP growth target of 4% for 2024, as projected under the 3rd Review of the IMF-supported programme.

The remarkable performance, touted by the Ministry of Finance in a statement, showcases Ghana’s post-debt restructuring resilience and positions the country as a standout performer in a global economy where post-restructuring growth rates typically range between 1% and 2%.

Impressive GDP Growth Rates

Data from the Ghana Statistical Service (GSS) reveal that the country’s real GDP growth for the first three quarters of 2024 averaged an impressive 6.3%, compared to 2.6% during the same period in 2023. Quarterly expansions of 4.8% in Q1, 7.0% in Q2, and a record 7.2% in Q3 mark the highest quarterly growth rates in five years.

The non-oil sector also performed robustly, recording an average growth rate of 6.2% for the period, compared to 2.6% in 2023. Quarterly non-oil sector growth reached 4.3% in Q1, 6.6% in Q2, and 7.7% in Q3.

Sector-by-Sector Breakdown

Industry Sector

The Industry sector led the growth, with an average expansion of 8.9%, driven by:

  • Mining and Quarrying: 15.0% growth (Q1: 12.9%, Q2: 14.8%, Q3: 17.1%)
  • Construction: 9.0% growth (Q1: 8.2%, Q2: 8.4%, Q3: 10.3%)
  • Oil & Gas: 8.6% growth (Q1: 13.8%, Q2: 14.6%, Q3: -0.6%)
  • Manufacturing: 3.1% growth (Q1: 2.0%, Q2: 4.2%, Q3: 3.4%)

Services Sector

The Services sector grew by 5.0%, with notable contributions from:

  • Information & Communication: 15.9% growth (Q1: 17.9%, Q2: 12.6%, Q3: 17.1%)
  • Financial & Insurance Activities: 6.9% growth (Q1: 5.5%, Q2: 7.6%, Q3: 7.8%)
  • Accommodation & Food Services: 5.7% growth (Q1: 7.9%, Q2: 3.2%, Q3: 1.7%)
  • Transport & Storage: 3.8% growth (Q1: 3.3%, Q2: 3.6%, Q3: 4.4%)

Agriculture Sector

The Agriculture sector expanded by 4.6%, driven by:

  • Crops Sub-sector: 4.6% growth (Q1: 5.0%, Q2: 7.2%, Q3: 5.9%)
  • Livestock Sub-sector: 4.7% growth (Q1: 4.6%, Q2: 4.7%, Q3: 4.8%)

Sustaining the Growth Momentum

The sustained growth is attributed to strategic government initiatives aimed at boosting economic resilience and improving living standards. Key programmes include:

  • Planting for Food and Jobs Phase 2
  • SME Growth and Opportunity Programme
  • One District, One Factory
  • Economic Enclave Programme
  • Ghana CARES Programme

Outlook and Regional Leadership

Ghana’s strong economic performance underscores its commitment to fiscal consolidation, debt restructuring, and inclusive growth. This momentum positions the nation as a leader in economic recovery across the region and sets a benchmark for other post-debt restructuring economies.

The country’s ability to sustain this trajectory will hinge on the continued implementation of growth-oriented policies and its focus on leveraging strategic sectors to drive inclusive economic transformation.

 

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