By Juliet ETEFE ([email protected])
The economy recorded a slower growth rate of 3.6 percent in fourth-quarter (Q4) 2024, reflecting a sharp decline from the robust momentum witnessed earlier in the year.
This was revealed in provisional gross domestic product (GDP) estimates released by the Ghana Statistical Service (GSS).
Notwithstanding its Q4 decline, the economy maintained its growth trajectory in 2024 with a provisional GDP growth rate of 5.7 percent compared to 3.1 percent in 2023 – oil and gas activity contributing significantly to the expansion.
According to GSS, the economy expanded during the year’s first three quarters, reaching growth rates of 1.9 percent, 5.1 percent and 7.5 percent respectively.
The Q4 slowdown was primarily attributed to a significant slump in the industrial sector, which grew by a marginal 0.2 percent during the period.
“This slowdown of 3.6 percent was the lowest growth rate recorded across all four quarters of 2024. We look at the growth rate from a sectoral perspective. With a slowdown in the growth rate of 3.6 percent in the last quarter of 2024, it was largely represented by the plummeting of industry, growing at 0.2 percent relative to agricultural and services sectors, respectively growing by 2.9 percent and 6.3 percent in the last quarter of 2024,” noted Government Statistician, Professor Samuel Kobina Annim.
This was sustained largely by non-oil activities, which recorded a higher annual growth of 6.0 percent from 3.6 percent in the previous year – underscoring the growing importance of non-extractive sectors in the country’s economic structure.
Sectoral breakdown
In nominal terms, Q4 GDP at basic prices stood at GH¢308.1billion. The services sector remained the dominant contributor, accounting for GH¢151.5billion or 49.2 percent of the output.
Industry followed with GH¢98.2billion (31.9%), while agriculture contributed GH¢58.5billion, representing 19 percent of total GDP.
At current prices, GDP (inclusive of oil) was estimated at GH¢331.2billion with non-oil GDP at GH¢324.4billion. In constant terms, GDP stood at GH¢53.1billion (oil-inclusive) and GH¢50.3billion (non-oil).
From a sectoral growth perspective, the services sector grew by 6.3 percent in Q4 2024; maintaining its role as the main driver of economic activity.
Agriculture expanded by 2.9 percent, while the industry sector barely grew; registering just 0.2 percent due to contractions in key sub-sectors such as mining & quarrying and oil & gas.
Sub-sector performance
The decline in industrial growth was largely driven by an 8.2 percent contraction in the mining and quarrying sub-sector, including an 8.7 percent dip in oil and gas production.
Gold production also declined, by 8.4 percent during the quarter. In contrast, the construction sub-sector recorded a robust growth of 10.7 percent; making it the highest performer within industry for the quarter.
The agriculture sector’s performance was mixed. While crops grew by 2.6 percent, the cocoa sub-sector saw a significant contraction of 21.4 percent – its sixth consecutive quarterly decline.
Forestry and logging also continued its downward trend, contracting by 5.3 percent in Q4. However, fishing recorded a notable rebound, growing by 9.2 percent—the highest in six quarters—after a 6.4 percent contraction in the previous quarter.
Within the services sector, information and communication posted an impressive 14.9 percent growth, contributing significantly to the sector’s overall performance.
On the other hand, health and social work activities contracted by 1.1 percent on a year-on-year basis and by 0.2 percent quarter-on-quarter.
Annual GDP review
For the full year, Ghana’s GDP at basic prices reached GH¢1.098trillion. The services sector continued to dominate, contributing GH¢515.9billion or 47.0 percent. Industry followed with GH¢338.8billion (30.8 percent) and agriculture with GH¢243.7billion (22.2 percent).
At current prices, annual GDP (oil-inclusive) stood at GH¢1.176trillion while non-oil GDP was estimated at GH¢1.128trillion. In constant 2013 prices, GDP stood at GH¢197.6billion – reflecting the real value of goods and services produced after adjusting for inflation.
Annual growth across sectors showed similar patterns to quarterly trends. The services sector expanded by 5.9 percent, supported by a 15.8 percent growth in information and communication. Industry grew by 7.1 percent, largely driven by a 9.6 percent expansion in construction. Agriculture posted a modest 2.8 percent growth, impacted by continued contractions in forestry, logging and cocoa.
Structural economic shifts
GSS noted a slight shift in the structure of Ghana’s economy over the past decade. Since 2013, the services sector’s contribution to GDP has increased from 42.7 percent to 47.0 percent in 2024.
The industry sector has declined from 35.9 percent to 30.8 percent, while agriculture has slightly increased from 21.4 percent to 22.2 percent.
GDP per capita for 2024 was estimated at GH¢35,632, with Gross National Income (GNI) per capita at GH¢34,344, based on a projected population of 33 million.
