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Ghana's economy contracts in Q2

 


Ghana’s economy grew by -3.4% Gross Domestic Product (GDP) growth rate in the second quarter of this year, the first time it has contracted since 1983.

According to figures released by the Ghana Statistical Service, the heavy fall was largely attributed to some restrictions on activities in the economy, which virtually came to a standstill during the partial lockdown period, as a result of the Coronavirus outbreak.

With oil, the economy recorded -3.2% GDP growth rate in quarter two.

Addressing Journalists, Government Statistician, Professor Samuel Kobina Annim explained that the agriculture sector was the only one that recorded a positive growth rate for the period.

The agric sector recorded the highest growth rate of 2.5 percent between April and June 2020.

Read also: Food prices push inflation up to 11.4% in July 2020

Industry and services sectors however grew by -5.7% and -2.6% respectively for 2020 Quarter Two.

The Livestock sub-sector recorded the highest year-on-year growth rate of 5.7% in the agric sector. Once again, the Forestry and logging sub-sector recorded the lowest GDP, with a contraction (-8.4%).

For industry, the Electricity sub-sector recorded the highest year-on-year quarterly GDP growth rate of 16.0% for 2020 Q2, while the Manufacturing sub-sector recorded the lowest, with a contraction (-14.3%). 

With regard to services, the Information & Communication sub-sector recorded the highest year-on-year quarterly GDP growth rate of 74.2% while the Hotels & Restaurants sub-sector recorded the lowest growth of –79.4%.

The quarter-on-quarter seasonally adjusted GDP growth rate for the 2020 Q2 was however -0.8%. This means that the value of goods and services produced in 2020 Q2 contracted by 0.8% over the value recorded in 2020 Q1.

The 2020Q2 GDP at current prices was estimated at GH₵85,758.1 million compared to GH₵84,312.0 million for 2019Q2.

Quarter one GDP

The economy grew by 4.9% in the first quarter of this year, at a time, the coronavirus pandemic has reached an alarming rate in Europe, Asia and the United State of America.

According to the GSS, the services sector recorded the highest growth rate of 9.5% followed by the agriculture sector, which expanded by 2.8% and the industry sector by 1.5%.

The main sub-sectors driving GDP growth in January to March 2020 GDP were information & communication, manufacturing, education and public administration & defence, social security.

Source: Myjoyonline

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