Ghana’s economy grew at a much slower pace in the first three months of this year compared to the same period last as the COVID-19 pandemic gathered steam.
The latest GDP data released by the Ghana Statistical Service showed that the economy in the first quarter grew at a rate of 4.9 percent (year-on-year) — slower than the 6.7 percent recorded in 2019.
When seasonally adjusted, Ghana’s Real GDP declined to 1.2% in quarter one (January to March) of 2020; from 1.9% recorded in quarter four (October to December) of 2019.
Provisional real quarterly gross domestic product growth rate (QGDP) including Oil and Gas is 4.9% (year on year) in the first quarter of 2020. GDP growth rate without oil and gas (Non-Oil GDP), however, for first quarter of 2020 is 4.9% which compares to the same period in 2019 with a growth rate of 6%.
According to the statistical agency, the negative contributors to the first-quarter growth came from the sub-sectors of Trade, Repair of Vehicle, Household Goods Construction, Forestry & Logging and Professional, Administrative & Support activities.
On the other hand, the services sector was the main driver of GDP growth contributing 3.6 percentage points (73.1%) to the overall GDP growth rate of 4.9% in quarter one, 2020.
The main sub-sectors driving GDP growth in January to March 2020 GDP were Information & Communication, Manufacturing, Education and Public Administration & Defence, Social Security
Information & Communication sub-sector expanded from 67.6% in quarter one of 2019 to 77.4% in quarter one of 2020. Its contribution to GDP growth was 2.10 percentage points (42.7%).
The manufacturing sub-sector also recorded a lower growth of 5.0% in the 1st quarter of 2020 compared to 5.6% in same period of 2019. It however contributed 0.60 percentage points (12.2%) to overall GDP growth of 4.9% in quarter one, 2020.
The Public Administration & Defence, Social Security sub-sector expanded by 13.6% in quarter one of 2020 from 9.0% in quarter one of 2019 contributing 0.40 percentage points to GDP growth.
Construction sub-sector contracted by 6.9% in 2020Q1 and contributed -10.6 percent to GDP growth.