Govt to consolidate gains in H1...As economy rebounds strongly

Government will continue to prioritise the restoration and sustenance of macroeconomic stability which is necessary for the promotion of its inclusive growth agenda. 

“It is expected that the implementation of the government’s growth strategy, including the Planting for Food and Jobs Phase 2 Programme, the SME Growth and Opportunity Programme, the 1 District 1 Factory Programme, the Economic Enclave Programme under the Ghana CARES Programme will further consolidate the gains we are making in the economic recovery to improve the living conditions of the Ghanaian people,” a statement from the Ministry of Finance said.

The assurance was premised on the fact that Ghana’s economy witnessed significant growth in the first half (H1) of 2024, with key contributions from the agriculture, industry and services sectors. 

According to a release issued by the Ministry of Finance, the country's Gross Domestic Product (GDP) was sustained by a strong rebound in industry and steady performances from agriculture and services, reflecting a positive trend in the nation’s economic recovery.

Industry 

The industry sector led, recording an average growth of 8.0% in H1 2024. This marks a sharp turnaround from the contraction of 2.0% seen during the same period in 2023. 

The industry’s impressive performance was driven by robust growth in the mining and quarrying (13.9%), Oil & Gas (9.9%), construction (8.3%), and manufacturing (2.8%) sub-sectors. 

The mining and quarrying sector stood out with a 14.8% growth in the second quarter, cementing its role as a key driver of the sector's overall recovery.

Agriculture 

Agriculture followed with a solid 5.0 per cent expansion in the first half of the year, supported by gains in the crops, fishing and livestock sub-sectors. 

The crops sub-sector posted a 5.6% growth, bolstered by a 6.4% increase in Q2 2024, while the fishing and livestock sub-sectors both grew by 4.7%.

Services 

The services sector, which remains vital to Ghana’s economic structure, recorded a growth of 4.4% in H1 2024, improving from a 3.2% growth in Q1 to a 5.8% increase in Q2. 

Leading the charge in this sector was the information and communication sub-sector which grew by a remarkable 15.3% over the period. 

Other notable contributors included the accommodation & food service activities (7.4%), financial & insurance activities (6.5%), and transport & storage (3.4%) sub-sectors.

Robust recovery 

“The latest GDP statistics released by the Ghana Statistical Service (GSS) last Wednesday showed that the Ghanaian economy was fast recovering amid global challenges and debt restructuring. 

The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that the government is pursuing under our IMF-supported Post COVID-19 Programme for Economic Growth (PC-PEG),” the release said.

It said overall Real Gross Domestic Product (GDP) growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8 per cent for the period, significantly higher than the 2.9% recorded in the same period in 2023. 

“The 2024 first half-year growth of 5.8% is supported by a 4.8 per cent expansion in the economy in Q1 2024 and 6.9% in Q2 2024. 

The 6.9 per cent growth recorded in Q2 of 2024 is the highest quarterly GDP growth recorded in the past five years. 

Non-oil GDP growth for the first half of 2024 was equally robust with a growth rate of 5.6%, significantly higher than the 3.8% recorded in the first half year of 2023. The first half-year economic expansion is supported by Q1 growth of 4.3 per cent and Q2 growth of 7.0 per cent,” it said.

The release said it was instructive to note that the 5.8% overall growth for the first half of 2024 was significantly higher than the 1.5 per cent growth target for 2024 which was later revised to 3.1% during the 2024 Mid-Year Review of Fiscal Policy presented in Parliament in July 2024. 

It said given that Ghana completed its domestic debt restructuring programme in 2023 and is currently in the process of completing its external debt restructuring programme, the growth performance for the first half-year of 2024 was much higher than the growth recorded by countries which had undergone similar debt restructuring programmes in the past. 

“A case in point is Jamaica which recorded average real GDP growth of 1%-2% for about a decade post its debt restructuring,” it added.