Ghana’s Economic Growth Reaches 5.7% in 2024 Despite Fourth Quarter Decline

Ghana’s economy grew by 5.7% in 2024, up from 3.1% in 2023. However, the fourth quarter growth rate dropped to 3.6%. The Services sector was the largest contributor, while Agriculture and Industry faced contractions, particularly in mining and cocoa.

Ghana’s economy demonstrated significant growth, recording an increase of 5.7% in 2024 compared to a revised growth rate of 3.1% in 2023. Despite this overall increase, the growth rate for the fourth quarter of 2024 fell to 3.6%, a decline from the 7.2% seen in the preceding quarter.

The Services sector contributed the most to the economy, making up 47% of Gross Domestic Product (GDP) at basic prices. The Industry and Agriculture sectors followed, accounting for 30.8% and 22.2%, respectively. This indicates a significant reliance on the Services sector for economic stability and growth.

Government Statistician Professor Samuel Kobina Annim indicated that various sectors, particularly mining and quarrying, experienced contractions, which impacted the fourth-quarter growth rates negatively. He remarked, “The fall in the growth rate for the fourth quarter was due to contractions within the agriculture and industry sectors of the economy.”

Within the Industry sector, the Mining and Quarrying sub-sector and the Oil and Gas sector both faced setbacks, with year-on-year reductions of 8.2% and 8.7%, respectively. This downturn is critical to note as it reflects the vulnerabilities present in Ghana’s industrial sectors.

The cocoa sub-sector of agriculture saw a consistent decline, recording a 21.4% contraction in the fourth quarter of 2024, marking four consecutive quarters of decline. In contrast, the Information and Communication sub-sector exhibited robust growth, highlighting areas of potential within the economy, although the Health and Social Work sub-sector faced a downturn during the same period.

In summary, while Ghana’s economy has shown overall growth in 2024, challenges remain, especially in the fourth quarter where significant contractions occurred in key sectors. The Services sector emerged as a vital contributor, yet the declines in mining, oil, and agricultural sectors pose risks that necessitate address to foster sustainable economic development.

Original Source: www.ghanaweb.com