Economy Records 7.2% Growth In Q3
– Highlights resilience amidst global challenges
Story: Isaac AIDOO, Accra
GHANA’S economy achieved an impressive year-on-year growth rate of 7.2% in the third quarter of 2024, marginally surpassing the 7.0% recorded in Q2 2024. This sustained growth highlights the resilience of the country’s economy amidst global challenges.
The data, released by Professor Samuel Kobina Annim, the Government Statistician at the Ghana Statistical Service (GSS), underscores the continued recovery of Ghana’s economy following years of economic strain.
Seasonally adjusted GDP figures indicate a 1.7% increase in real GDP for Q3 2024 compared to Q2 2024, slightly higher than the 1.6% growth recorded in the second quarter.
Key Drivers of Growth
According to Prof. Annim, the economy’s robust performance in Q3 2024 was driven by significant contributions from:
• Mining and Quarrying
• Information and Communication
• Crops
• Construction
• Manufacturing
However, some sub-sectors faced setbacks, including Fishing, Water and Sewerage, and Other Personal Service Activities, which recorded contractions during the period.
Sectoral Contributions to GDP
The Services sector remained the largest contributor to Ghana’s economy, accounting for 42.9% of GDP at basic prices in Q3 2024. The Industry sector followed with a share of 32.6%, while Agriculture contributed 24.5%.
• Industry: Recorded the highest year-on-year GDP growth of 10.4%, driven by the Mining, Manufacturing, and Construction sub-sectors.
• Services: Grew by 6.4%, supported by expansions in Information and Communication.
• Agriculture: Posted modest growth of 3.2%, with Crops expanding by 5.9% year-on-year.
Despite the positive overall performance, the Fishing sub-sector contracted sharply by -21.7% year-on-year and -6.5% quarter-on-quarter (seasonally adjusted).
Contributions to GDP Growth in Q3 2024
The contributions of the major sectors to the total year-on-year GDP growth were:
• Industry: 3.4 percentage points (p.p.)
• Services: 2.8 p.p.
• Agriculture: 0.6 p.p.
Prof. Annim emphasized that the extractive sector continues to play a pivotal role in Ghana’s economic resurgence, with Mining and Quarrying remaining at the forefront of industrial growth.
Insights from Q2 2024
Ghana’s Q2 2024 growth rate of 6.9% year-on-year marked the fastest expansion in five years. According to Prof. Annim, this growth was fueled by the extractive sector’s remarkable performance, mirroring the economic trends of Q3 2019.
• The Industry sector grew by 9.3%, with the gold sector recording a substantial expansion of 23.6%.
• The Services sector grew by 5.8%, bolstered by robust activity in Information and Communication.
• The Agriculture sector grew by 5.4%, although the cocoa sub-sector contracted for the fourth consecutive quarter by -26.2%, reflecting challenges such as poor weather and crop diseases.
GDP Breakdown for Q3 2024
The GDP estimate for Q3 2024, including oil and gas, stood as follows:
• Services: GH₵106,280 million (42.9%)
• Industry: GH₵80,844 million (32.6%)
• Agriculture: GH₵60,696 million (24.5%)
Excluding oil and gas, the non-oil GDP growth rate was 7.7% year-on-year, compared to 2.4% in Q3 2023, highlighting the resilience of non-extractive economic activities.
Economic Context and Challenges
Ghana’s economic rebound comes as the country continues efforts to restructure its debt. The government recently invited holders of approximately $13 billion in international bonds to participate in a debt swap as part of its financial recovery strategy. This recovery has been critical for stabilizing public finances and rebuilding investor confidence.
Despite strong growth in Mining and Quarrying, Prof. Annim noted that sub-sectors like Fishing, Water Management, and Cocoa require targeted interventions to address persistent challenges. For instance, the cocoa industry has been hit hard by declining crop output, disease outbreaks, and poor weather conditions, underscoring the need for structural reforms and investments. Ghana’s economic performance in Q3 2024 demonstrates resilience and strategic recovery amid global uncertainties. While sectors such as Mining, Information and Communication, and Crops continue to drive growth, challenges in sub-sectors like Fishing and Cocoa must be addressed to ensure sustained and inclusive economic development. Prof. Annim called for continued investment in key industries and targeted policies to address lagging sectors, which will be crucial in sustaining Ghana’s growth trajectory.
