Economy expands by 3.1% in quarter one 2021

The Ghanaian economy expanded by 3.1% in the first quarter of this year, the lowest since the same period in 2019.

However, in the same period of 2020, the Gross Domestic Product (GDP) growth rate was 7.0%.

According to figures from the Ghana Statistical Services, Construction (14.2%)), Manufacturing (6.1%) as well as Information and Communication (22.1%) sub sectors were the main drivers of growth for the first three months.

The Agriculture sector recorded the highest growth of 4.3% and was followed by the Services sector with a growth of 4.0%. The Industry sector also expanded by 1.3%.

Within the Agriculture sector, the crops sub-sector grew by 1.4% in the 1st quarter of 2021, compared to 2.8% in the 4th quarter of 2021. The Livestock subsector also grew by 1.3% compared to 1.7% recorded in the 4th quarter of 2020.  The Forestry and Logging subsector grew by 0.1% compared to a contraction of 2.4% in the 4th quarter of 2020. The Fishing sub-sector however contracted by -0.9% compared to a growth of 0.4% in the 4th quarter of 2020.

Within the Industry sector, the Construction sub-sector recorded a 3.5% growth in the 1st quarter of 2021, compared to 1.9% growth recorded in the 4th quarter of 2020. Manufacturing sub-sector grew by 2.0% in the 1st quarter of 2021 compared to a growth of 2.9% in the 4th quarter of 2020.

Water Supply, Sewerage, Waste Management & Remediation Activities sub-sector grew by 1.6% in 1st quarter of 2021, compared to a growth of 0.5% in the 4th quarter of 2020. The Mining and Quarrying sub-sector continued to contract by 2.6% in the 1st quarter of 2021, from -3.0% recorded in the 4th quarter of 2020.

In the Services sector, Real Estate and Information & Communication grew at a lower rate of 2.4% and 4.3% respectively in the 1st quarter of 2021, compared to a growth of 9.4% in Real Estate activities and 6.6% growth in Information & Communication in the 4th quarter of 2020.

The Trade; Repair of Vehicles, Household Goods also grew to 0.8% in the 1st quarter of 2021 compared to a growth of 1.4% in the 4th quarter of 2020.

Compared to 4th quarter of 2020, the Public Administration & Defense, Social Security grew by 1.4% in 2021 quarter one. There were contractions in the sub-sectors of Hotel and Restaurants (-4.4%) and Professional, Administrative & Support (-0.8%).

In terms of the share of the economy, the Services sector was the largest sector of the Ghanaian economy in the first quarter of 2021 with a share of 53% of GDP at basic prices. The GDP share of Industry and Agriculture were 25% and 22% respectively.

The GDP estimate at current prices in purchaser’s value for the 1st quarter of 2021 was GH¢119.3 billion compared to GH¢105.3 billion in the 1st quarter of 2020.

Economy grows marginally by 0.4% in 2020

The economy grew at a rate of 0.4% in 2020, beating slightly most institutions and analysts’ forecasts, provisional figures from the GSS revealed.

Without oil, the economy however grew at a rate of 1.3%.

Ghana was however among few countries on the African continent that recorded positive growth rates in 2020 in a year that covid-19 impacted negatively on global economies.

There were many expectations that the economy will grow at a rate of at least 1.0% of Gross Domestic Product last year.