Ghana’s Economy Grows By 2.9% In 2023

Dr Mohammed Amin Adam

The latest data released by the Ghana Statistical Service has revealed that the cumulative growth of the Ghanaian economy in 2023 stood at 2.9%, marking a 0.9 percentage point decline from the 3.8% growth recorded in 2022.

Although the growth rate decreased, it surpassed the government’s revised target of 1.5% for the period, providing a more positive outlook than anticipated.

Notably, the economy showed resilience in the fourth quarter of 2023, expanding by 3.8%, the highest growth rate observed among the four quarters in the year.

The service sector emerged as the driving force behind the annual growth, registering a robust expansion of 5.5%. Meanwhile, the industry sector experienced a contraction during the same period, indicating areas for potential focus and improvement.

Analysis of the data also revealed that over the past decade, four out of the 22 sub-sectors within the economy, namely crops, trade (including repair of vehicles and household goods), mining, quarrying, and manufacturing sectors, collectively contributed to over 50% of Ghana’s GDP. Notably, mining, quarrying, and manufacturing sectors have seen an increase in their combined GDP share, now accounting for over 60% of the national output, indicating their growing importance in the economic landscape.

On a positive note, Ghana’s Gross National Income (GNI) per capita in local currency has more than doubled since 2018, rising from GHS 9,813 to GHS 25,349. However, when viewed from a dollar perspective, the income per capita has remained relatively stable over the past six years, fluctuating between a high of US$ 2,453 and a low of US$ 2,126.

These economic indicators reflect a mixed performance for Ghana’s economy in 2023, with notable contributions from the service sector despite challenges faced by the industry segment. As the nation navigates through economic dynamics, policymakers and stakeholders may need to address sector-specific issues to enhance overall growth and sustainability.

By Vincent Kubi

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