Ghana’s economy expands by 3.9% Q2 of 2021

Ghana's economy for the second quarter of 2021, is estimated to have increased by 3.9 percent compared to the same period last year.

According to provisional figures from the Ghana Statistical Service, Ghana's real GDP increased by 0.9 percent in the second quarter (April to June). This is a 0.1 percentage point higher than what was recorded in the first quarter of the year.

According to Government Statistician, Prof. Samuel Anim, the Services Sector influenced the growth recorded for the period.

He noted that the growth rate could have been higher, but for the contraction in industry, which was influenced by a shrink in the mining and quarrying sub sector.

The GDP estimate at current prices in purchaser’s value for the 2nd quarter of 2021 was estimated at ¢101.94 billion compared to ¢88,470.1 million in the 2nd quarter of 2020.

Below are details of the GDP growth for the second quarter:

● Ghana provisional real Gross Domestic Product (GDP) in volume terms was estimated to have increased by 3.9% in quarter two (April to June) of 2021 compared to the same period in 2020.

● When seasonally adjusted, Ghana real GDP increased by 0.9% in quarter two (April to June) of 2021; 0.1 percentage point higher than what was recorded in quarter one (January to March) of 2021.

● The Trade, Repair of Vehicles, House Goods Activities, Manufacturing, Information & Communication, Health & Social Works and Crops sub-sectors were the main drivers of GDP growth for the second quarter of 2021.

● Main sub-sectors that expanded in quarter two of 2021 are:

o Water Supply, Sewerage, Water Management & Remediation Activities (20.5%);

o Information & Communication (20.0%);

o Hotel & Restaurants (18.7%);

o Real Estate (13.8%);

o Fishing (12.7%);

o Forestry & Logging (11.9%);

o Education (11.8%);

o Trade, Repair of Vehicles, House Goods (10.7%);

o Electricity (9.5%);

o Manufacturing (8.3%).

● Sub-sector that contracted in quarter two of 2021 is:

o Mining & Quarrying (-18.9%).

Gross Domestic Product (GDP) growth is the main indicator of economic performance. There are three approaches used to measure GDP: the output approach, the expenditure approach, and the income approach.

This Statistical Release contains independently compiled quarterly estimates of the Gross Domestic Product (GDP) for the 2nd quarter of 2021 using the production approach. The estimates are based on the 2008 System of National Accounts (SNA), the International Standard Industrial Classification (Rev.4) published by the United Nations, and the Quarterly National Accounts Manual: Concepts, Data Sources and Compilation prepared by the International Monetary Fund (IMF). This means that the methodology, concepts, and classifications are in accordance with the guidelines and recommendations of an internationally agreed system of national accounts. The estimates of real GDP are expressed in terms of the base year, 2013.

The Annual GDP estimates are derived independent of the quarterly estimates. Short-term indicators are used to estimate the quarterly GDP (see IMF’s Quarterly National Accounts Manual: Concepts, Data Sources and Compilation) and benchmarked to the annual GDP.

Current or Nominal GDP is the value of final goods and services evaluated at current quarter prices.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh