Dr. Mohammed Amin Adam
The Finance Minister, Dr. Mohammed Amin Adam, has announced that the country’s economy is back to life, recording its highest quarterly growth in five years, with a remarkable 6.9% GDP growth rate in the second quarter of 2024.
According to him, the latest GDP statistics demonstrate remarkable resilience, which reveals a strong recovery amid global challenges and debt restructuring.
In a statement issued yesterday, Dr. Adam attributed the development to the government’s strategic interventions and commitment to macroeconomic stability, which are yielding positive results.
The country’s GDP growth averaged 5.8% in the first half of 2024, significantly higher than the 2.9% recorded in the same period in 2023.
“The 5.8% growth is a testament to our commitment to restoring macroeconomic stability and promoting inclusive growth,” Dr. Adam said.
He added, “We will continue to prioritise policies that support economic recovery and improve the living conditions of Ghanaians.”
He explained that the 2024 first half-year growth of 5.8% is supported by a 4.8% expansion in the economy in Q1 2024 and 6.9% in Q2 2024.
“The 6.9% growth recorded in Q2 of 2024 is the highest quarterly GDP growth recorded in the past five (5) years,” he stressed.
The Minister noted that the Non-Oil GDP growth for the first half of 2024 was equally robust with growth rate of 5.6%, significantly higher than the 3.8% recorded in the first-half year of 2023.
“The first half-year economic expansion is supported by Q1 growth of 4.3% and Q2 growth of 7.0%,” he explained further.
“It is instructive to note that the 5.8% overall growth for the first half of 2024 is significantly higher than the 1.5% growth target for 2024 which was later revised to 3.1% during the 2024 Mid-Year Review of Fiscal Policy presented in Parliament in July 2024,” the Finance Minister asserted.
Dr. Adam said given that the country completed its domestic debt restructuring programme in 2023 and is currently in the process of completing its external debt restructuring programme, the growth performance for the first half-year of 2024 is much higher than growth recorded by countries which have undergone similar debt restructuring programmes in the past.
“A case in point is Jamaica which recorded average real GDP growth of 1%-2% for about a decade post its debt restructuring,” he indicated.
According to him, all three sectors of the economy, namely agriculture, industry, and services contributed to the robust growth recorded in the first-half of 2024, with the industry sector leading the charge.
According to the Ghana Statistical Service (GSS), the industry sector expanded by 8.0% in the first half of 2024, a significant rebound from the 2.0% contraction recorded in the same period last year.
The industry sector, which consists of mining, oil & gas, construction, and manufacturing drive growth, was driven by 13.9% growth in mining and quarrying, 9.9% growth in oil & gas, 8.3% growth in construction, and 2.8% growth in manufacturing.
The Finance Minister noted that these sub-sectors contributed significantly to the sector’s overall growth, with mining and quarrying leading the way.
The agriculture sector, made up of crops, fishing, and livestock sub-sectors, also showed impressive growth, expanding by 5.0% in the first half of 2024.
The key drivers were 5.6% growth in the crops sub-sector, 4.7% growth in the fishing subsector, and 4.7% growth in the livestock subsector.
The services sector, consisting of Information and Communication, Accommodation, and Financial Services, grew by 4.4% in the first half of 2024, driven by 15.3% growth in Information and Communication.
Dr. Adam said the 4.4% growth in the first half of 2024 was driven by 7.4% growth in Accommodation & Food Service Activities, and 6.5% growth in Financial & Insurance Activities.
“Other Services sub-sectors, such as Transport & Storage, Real Estate, and Professional Services, also contributed to the sector’s growth,” the Minister disclosed.
“Government will continue to prioritise the restoration and sustenance of macroeconomic stability which is necessary for the promotion of our inclusive growth agenda.
“It is expected that the implementation of government’s growth strategy including the Planting for Food and Jobs Phase 2 Programme, the SME Growth and Opportunity Programme, the 1 District 1 Factory Programme, the Economic Enclave Programme under the Ghana CARES Programme will further consolidate the gains we are making in economic recovery to improve the living conditions of the Ghanaian people,” he said.
By Ernest Kofi Adu
