Ghana’s economy experienced its fastest growth in over two years, with GDP increasing by 4.7% in the first quarter of 2024. This marked an improvement from the 3.8% growth recorded in the previous quarter, driven primarily by solid performances in the industry and service sectors, according to government statistician, Samuel Kobina Annim.
The Ghana Statistical Service (GSS) reported that this growth was the highest since the last quarter of 2021. The industry sector showed a remarkable 6.8% growth, with mining and quarrying leading the way, expanding by 12.9% year-on-year. The services sector, the largest in the economy, grew by 3.3%, with information and communication services recording the highest growth at 17.9%.
However, not all sectors performed well. The health and social work sector contracted by 8.8%, and other sectors, such as electricity, public administration, and education, also saw declines.
The World Bank, in its 2024 outlook, projected that Ghana’s growth would remain subdued at 2.8%. This outcome would be due to fiscal consolidation, high inflation, and elevated interest rates, expected to affect private consumption and investment. Nonetheless, the economy will likely rebound to a long-term growth rate of about 5% by 2026 as conditions stabilise.
Fiscal reforms are projected to reduce the deficit to 5% of GDP in 2024, with a primary surplus of 1.6% expected by 2026, representing a significant fiscal adjustment. Agriculture grew by 4.1%, with crops showing the fastest growth year-on-year and quarter-on-quarter.
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