Ghana’s Economy Records Fastest Growth in Nearly Five Years
TLDR
- Ghana’s economy grew 7.2% in the third quarter of 2024, its fastest pace since late 2019.
- Growth was driven by a robust performance in the industrial sector.
- The sector posted a 10.4% annual growth, boosted by a 17.1% increase in mining and quarrying.
Ghana’s economy grew 7.2% in the third quarter of 2024, its fastest pace since late 2019, driven by a robust performance in the industrial sector. This growth, up from a revised 7% in the second quarter, exceeded economists' forecasts of 5.4%. Government Statistician Samuel Kobina Annim announced the data on Wednesday in Accra.
The industrial sector led the surge with a 10.4% annual growth, boosted by a 17.1% increase in mining and quarrying, which expanded for the fourth consecutive quarter. Services grew 6.4%, driven by a 17.1% rise in the information and communications sector. However, agriculture slowed to 3.2%, impacted by a 26% contraction in cocoa production, which faced challenges including bad weather, crop disease, and smuggling.
The strong economic performance coincides with John Mahama’s recent election victory, as Ghana emerges from a debt restructuring process and continues its IMF program, which includes austerity measures.
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Key Takeaways
Ghana’s industrial sector, particularly mining and communications, highlights the growing importance of non-agricultural sectors in the economy. However, the continued contraction in cocoa production underscores vulnerabilities in the agricultural sector, which employs 40% of the workforce. Addressing these challenges, particularly in cocoa, will be key to ensuring inclusive growth. The growth coincides with Ghana’s debt restructuring and IMF-backed reforms, which have aimed to stabilize the economy amid a cost-of-living crisis. While GDP growth is promising, sustained progress will depend on balancing fiscal discipline with measures to address agricultural challenges and maintain social stability.
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