Ghana’s economy has recorded its highest growth rate in six years, with provisional GDP data from the Ghana Statistical Service (GSS) showing a 7.2% year-on-year increase in the third quarter of 2024. This marks a significant improvement from the 2.2% recorded in Q3 2023, underscoring a strong recovery trajectory and renewed economic confidence. Real GDP at constant prices for Q3 2024 reached GHS 48.20 billion, compared to GHS 44.95 billion in the same period last year, signaling a notable expansion across key sectors.
The industry sector emerged as the primary driver of growth, achieving an impressive 10.4% year-on-year increase. This performance was bolstered by a stellar showing in the Mining and Quarrying subsector, which posted 17.1% growth, reflecting strong activity in resource extraction, particularly in gold and other minerals. The Construction subsector followed closely with a 10.3% increase, fueled by ongoing infrastructure projects and urban development, while the Electricity subsector recorded a 3.8% rise, supported by improved generation capacity and distribution efficiency.
The services sector also played a critical role in the economy’s expansion, recording 6.4% growth. This was primarily driven by the Information and Communication subsector, which surged by an impressive 17.1%, highlighting the rapid adoption of digital technologies and innovations. The growth in services reflects increased investments in tech-driven solutions, improved internet penetration, and a growing demand for digital services across industries.
Conversely, the agricultural sector posted modest growth of 3.2%, falling short of expectations. This was primarily due to significant contractions in key subsectors, including the Cocoa subsector, which recorded a steep decline of -26.0% as production faced challenges from unfavorable weather conditions and disease outbreaks. The Fishing subsector also shrank by -21.7%, impacted by overfishing concerns, rising operational costs, and supply chain disruptions.
Looking ahead to 2025, economic analysts remain cautiously optimistic about Ghana’s growth prospects. The incoming government’s proposed policies to review import duties and reduce tax exemptions are expected to invigorate business activity, enhance competitiveness, and stimulate trade. These measures, coupled with efforts to diversify revenue streams and align with the IMF’s fiscal consolidation policies, aim to strengthen fiscal responsibility while fostering economic stability.
Experts anticipate GDP growth to remain above 4% in the coming quarters, driven by continued investments in industry, infrastructure, and technology. With strategic reforms and targeted policies, Ghana’s economy appears poised for sustained growth, reinforcing its position as a key player in the West African economic landscape.
