Ghana’s economy steadily growing
Ghana’s economy grew by 6.9% year-on-year in the second quarter of 2024, the fastest rate in five years, boosted by expansion in several key sectors according to the country’s statistics agency in September 2024
The strong growth represents a significant recovery for the producer of gold, oil and cocoa which has been grappling with its worst economic crisis in a generation due to skyrocketing public debt. “The 6.9% growth rate was the highest since the second quarter of 2019 and it was driven largely by strong expansion in the extractive sector. Statistics show Ghana’s overall industry sector grew by 9.3%, driven by mining and quarrying, while the gold sector expanded for the third consecutive period, by 23.6% in the quarter. The services sector grew 5.8%, while agriculture rose 5.4%. The cocoa sector in the world’s second biggest producer, however, contracted for the fourth consecutive quarter by 26.2%, highlighting the impact of a steady decline in crop output due to disease and poor weather.
The 2024 Annual Trade Report released by the Ghana Statistical Service presents a comprehensive analysis of Ghana’s trade performance over the 12month period. The findings highlight Ghana’s increasing export strength, with total exports reaching GH₵294.9 billion compared to imports of GH₵250.2 billion. This resulted in a trade surplus of GH₵44.7 billion, increasing astronomically in comparison to the previous year’s performance. Gold emerged Ghana’s top export commodity, contributing 55.3 percent of total export revenue. Exports of Petroleum and oils followed, making up 17.8 percent, while cocoa and cocoa products accounted for 8.4 percent.
The report also indicates a change in trading patterns, with exports to African countries nearly doubling compared to imports, strengthening Ghana’s role in intra-African trade under the African Continental Free Trade Area. The Q4 2024 Trade Newsletter also provides a detailed analysis of trade activities during the final quarter of the year. Exports stood at GH₵92.9 billion, while imports accounted for GH₵72.4 billion, resulting in a trade surplus of GH₵20.5 billion. This represents a rise from the GH₵6.1 billion surplus recorded in Q4 2023. Gold exports in the quarter was valued at GH₵49.8 billion, making up 53.6 percent of total export earnings. Crude petroleum, cocoa and other cocoa products also contributed 26.4 percent. Imports remained stablene, with mineral fuels and machinery being the most imported products. All indicators seem to be pointing in the rigt direction which is a major boost for Ghana’s trade business.
