Ghana GDP Growth Slows To 1-Year Low In 2nd Qtr 2019


The economy of Ghana advanced 5.7 percent year-on-year in the second quarter of 2019, following a 6.7 percent growth in the previous period.

It was the slowest expansion since the second quarter of 2018, amid sharp contractions in construction, water supply and electricity. Also, mining and financial services grew less.

GDP Annual Growth Rate in Ghana averaged 6.67 percent from 2000 until 2019, reaching an all time high of 25 percent in the first quarter of 2012 and a record low of -1.60 percent in the third quarter of 2015.

Industry Sector

The industrial sector rose 6.1 percent, following a 8.4 percent advance in the first quarter of 2019 . Output growth weakened for mining & quarrying (14.0 percent vs 20.9 percent) while contractions were recorded for construction (-8.3 percent vs -8.7 percent); water supply, sewerage, waste management and remediation activities (-7.9 percent vs -6.4 percent) and electricity supply (-7.5 percent vs 11.1 percent).

In contrast, oil & gas (25.2 percent vs 14.6 percent) and manufacturing (7.4 percent vs 5.6 percent) grew solidly and at a faster clip.

Service Sector

The services sector expanded 6.5 percent, slower than 7.2 percent in the previous period , as activity moderated in financial services (1.4 percent vs 2.1 percent); trade, repair of vehicles and household goods (2.0 percent vs 2.9 percent); hotels & restaurants (6.6 percent vs 8.6 percent); professional, administrative & support service activities (5.9 percent vs 6.8 percent) and health & social work (10.3 percent vs 22.1 percent).

In addition, public administration, defense & social security posted a decline (-2.8 percent vs 3.2 percent). Conversely, sharper gains were seen for information & communication (52.8 percent vs 37 percent); real estate (14.9 percent vs 9.1 percent); transport & storage (3.7 percent vs 3.1 percent) education (8.9 percent vs 8.5 percent).

Agric Sector

Agriculture grew 3.1 percent, much faster than 2.2 percent in the prior quarter , pushed by livestock (5.7 percent vs 5.5 percent) and crops and cocoa (4 percent vs 2.4 percent). However, forestry & logging (-6.5 percent vs -5.8 percent) and fishing (-2.1 percent vs -1.5 percent) reported declines.
On a quarterly basis , the GDP grew 1.4 percent, the least in a year, compared to 1.6 percent in the previous quarter.

credit: Trading Economics

(by Luisa Carvalho)

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