Ghana GDP Annual Growth Rate( 2015-2018): Ghana’s Economy continues to be Service Base Economy; It should be a great concern to Policy Makers

Ghana’s economy grew 6.8 percent year-on-year in the first quarter of 2018, easing from a 8.1 percent gain in the previous period. It was the weakest expansion since the first quarter of 2017, as the industrial sector and agriculture slowed. On a quarterly basis, the gross domestic product expanded 1.5 percent, slowing from a 2.1 percent growth in the prior period. GDP Annual Growth Rate in Ghana averaged 6.95 percent from 2000 until 2018, reaching an all time high of 25 percent in the first quarter of 2012 and a record low of -3.80 percent in the first quarter of 2014.

Ghana’s economy grew 6.8 percent year-on-year in the first quarter of 2018, easing from a 8.1 percent gain in the previous period. It was the weakest expansion since the first quarter of 2017, as the industrial sector and agriculture slowed. On a quarterly basis, the gross domestic product expanded 1.5 percent, slowing from a 2.1 percent growth in the prior period.

The industrial sector advanced 9.6 percent, lower than 17.5 percent in the fourth quarter of 2017, mainly due to a drop in construction (-0.8 percent compared to 5.0 percent in Q4) and a slowdown in mining (28.0 percent compared to 43.9 percent); oil and gas (24.8 percent compared to 57.9 percent) and electricity (2.4 percent compard to 2.8 percent). Meanwhile, output increased in manufacturing (3.1 percent compared to 1.3 percent) and water and sewerage (9.2 percent compared to 3.5 percent).
Agriculture grew 2.8 percent, easing from a 8.5 percent in the previous period, mostly due to crops and cocoa (4.6 percent compared to 9.7 percent); forestry and logging (1.6 percent compared to 3.0 percent) and fishing (-8.1 percent compared to 4.4 percent).
The services sector expanded 5.2 percent, higher than a 3.4 percent in the prior quarter, boosted by growth in information and communication (25.9 percent compared to 12.2 percent); real estate, professional, administrative and other (7.7 percent compared to 3.3 percent); public administration (3.1 percent compared to -4.0 percent) and trade, repair of vehicle and householg goods (2.9 percent compared to 1.5 percent). Also, output shrank less for transport (-1.7 percent compared to -3.2 percent) and community, social and personal services (-1.7 percent compared to -3.6 percent). On the other hand, growth eased for health (9.7 percent compared to 24.2 percent) and education (2.8 percent compared to 24.2 percent). Additionally, output dropped for finance and insurance (-7.9 percent compared to 1.8 percent) and hotel and restaurants (-0.4 percent compared to 2.5 percent).
Source: Ebenezer Nkum/business.com.gh/tradingeconomics.com