Oil drives economic growth to 8.5 percent in 2017

Ghana’s economy for the year 2017 has recorded a growth of 8.5 percent, mainly driven by the increase in the growth of oil production; data from Ghana Statistical Service (GSS) for the quarter four has revealed.

This represents a doubling in the growth rates compared to 3.7 percent recorded ending 2016.

For the 2017 fiscal year, the annualized daily average production, as at the end of the third quarter of 2017, was 89,018 bopd up from 72,238 bopd for the same period in 2016.

A total of 31,812 MMscf of associated gas was produced by the end of the third quarter in 2017.

Explaining the growth in the economy at a press briefing, the Acting Government Statistician, Baah Wadieh noted that the oil and gas sub-sector propelled the growth being witnessed.

The oil and gas sub-sector contributed 80.4 percent of the total growth of 46 percent in the mining and quarrying sector, under which oil and gas falls.

In monetary terms, the provisional Gross Domestic Product (GDP) estimate for the period is GHS 205, 914.0 million, with a corresponding per capita income of GHS 7,110.00.

The growth recorded for 2017 is above the targeted growth of 6.3 percent; the highest since 2012, when it grew by 9.3 percent.

Wadieh also highlighted some areas of growth; saying, “other areas that contributed were health and social welfare which also grew by 14.4 percent, information and communication also grew by 13.2 percent, fishing grew by 11.7 percent, education by 9.9 percent and crops by 9.4 percent, of which cocoa contributed 7.3 percent.”

“We also recorded some growth in water and sewage which was about 6.8 percent.”

“So these complemented the growth in oil to give us the overall growth rate of 8.5 percent,” Wadieh said.

The sectorial share in the fourth quarter of 2017 shows that the services sector continues to lead with 52.3 percent followed by industry 24.8 percent and agriculture with 22.9 percent.

The quarter also grew by recording 8.1 percent in 2017 compared to 4.5 percent in the same period of 2016.

In the agricultural sector, the crops sub-sector grew by 3.5 percent, compared to 3.3 percent in the third quarter of 2017. The livestock sub-sector grew by 1.7 percent in the fourth quarter of 2017, compared to 1.3 percent growth recorded in the third quarter of 2017. The forestry and logging sub-sector recorded the least growth rate of 0.4 percent within the Agriculture sector.

Within the Industry sector, the Mining and Quarrying sub-sector grew by 10.1 percent in the fourth quarter of 2017, compared to 9.8 percent in the third quarter of 2017. The construction sub-sector grew by 1.1 percent in the fourth quarter of 2017, compared to 1.7 percent growth recorded in the third quarter of 2017. Manufacturing sub-sector recorded the least growth rate of 0.3 percent compared to 0.6 percent in the third quarter of 2017.

In the Services sector, Health and Social Works grew by 5.2 percent compared to the 7.4 percent growth rate recorded in the third quarter of 2017. The Education sub-sector grew by 3.1 percent in the fourth quarter of 2017 compared to 3.7 percent in the third quarter of 2017. The least growth rate of -1.1 percent was observed in the Public Administration, Defence and Social Security sub-sector.

By Joshua W. Amlanu