Dr. Ernest Addison
In a surprising turn of events, Ghana’s economy has posted a stronger than expected growth in the first quarter of 2024, with GDP increasing by 4.7 percent.
This represents a significant improvement compared to the 3.1 percent growth recorded in Quarter 1 (Q1) last year.
According to the Bank of Ghana’s latest Monetary Policy Report, the growth was primarily driven by a robust recovery in the industry sector, which expanded by 6.8 percent after a 1.4 percent contraction in the same period last year.
The agriculture and services sectors also saw positive growth, with increases of 4.1 percent and 3.3 percent respectively.
This development is a welcome respite for Ghana’s economy, which has faced significant challenges in recent years.
In 2023, the economy saw most growth in the mining and quarrying sectors, but overall growth was sluggish.
However, with the latest figures, it appears that the economy is finally gaining momentum.
The Bank of Ghana has also revised its overall GDP growth projection for 2024 upward to 3.1 percent, from an earlier estimate of 2.8 percent.
This is a positive sign that the economy is on the right track.
According to the report, recent indicators suggest a positive outlook for economic activity moving forward. Passenger arrivals in Ghana rose by 12.7 percent year-on-year, reaching 98,205 in May 2024, up from 87,156 recorded in May 2023.
This also represents an 8.1 percent increase compared to April 2024.
Ghana’s ports also recorded improved international trade activity. Laden container traffic at Tema and Takoradi harbours increased by 9.4 percent year-on-year, with 59,639 containers handled in May 2024, compared to 54,538 in May 2023. Cumulatively, container traffic for the first five months of 2024 grew by 14.2 percent, reaching 284,745 containers.
This growth is a testament to the government’s efforts to revitalize the economy.
In March 2020, the Bank of Ghana increased mobile money transaction limits, which has likely contributed to the growth in economic activity.
However, it’s worth noting that the economy still faces challenges, including inflation and currency fluctuations.
Nevertheless, the latest figures suggest that Ghana is on the right track, and with continued efforts, the economy is likely to continue growing.
BY Daniel Bampoe