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

Ghana’s economy grew by 5.7% in 2024, up from 3.1% in 2023; however, growth slowed to 3.6% in Q4 2024. The Services sector was the largest contributor, with Industry and Agriculture following. Contractions in mining and the cocoa sub-sector impacted growth.

According to provisional data released by the Ghana Statistical Service (GSS), Ghana’s economy experienced a growth rate of 5.7% in 2024, a significant increase from the revised growth rate of 3.1% recorded in the previous year. Despite this, the growth rate witnessed a decline in the fourth quarter, falling to 3.6% compared to 7.2% in the third quarter of 2024.

The Services sector continued to be the predominant contributor to the economy, accounting for 47% of the Gross Domestic Product at basic prices. This sector was followed by Industry and Agriculture, which comprised 30.8% and 22.2%, respectively. The Government Statistician, Professor Samuel Kobina Annim, noted several contractions in various sectors that contributed to the slowdown in growth.

Professor Annim stated that the downturn in the fourth quarter was primarily due to contractions in both the agriculture and industry sectors. Specifically, within the Industry sector, there was a notable decrease in the Mining and Quarrying sub-sector as well as the Oil and Gas sector, which contracted by 8.2% and 8.7% year-on-year, respectively.

In Agriculture, the cocoa sub-sector reported a continuous decline, contracting by 21.4% for the fourth consecutive quarter. Conversely, the Information and Communication sub-sector exhibited remarkable growth within the Services sector, though the Health and Social Work sub-sector faced a contraction during the fourth quarter.

In summary, Ghana’s economy demonstrated an overall growth of 5.7% in 2024, despite challenges leading to a decline in growth during the fourth quarter. The Services sector remained the largest contributor to GDP, while contractions in sectors such as mining and agriculture highlighted areas needing attention for sustained economic improvement. The performance of different sectors, especially in agriculture and industry, will be crucial for future economic strategies.

Original Source: www.ghanaweb.com