Ghana’s Economy Grew By 4.2% In The First Quarter Of 2023

Ghana’s economic growth increased to 4.2 % year-on year in the first quarter of this year compared to 3.0% in the same period of 2022, Prof Samuel Annim, the Government Statistician, said on Wednesday.

Public administration, defense and social security, health, education, information and communication sub-sectors were the main drivers of GDP growth for the first quarter of 2023.

GDP growth rate without oil and gas (non-oil GDP) for first quarter of 2023 is 5.5% which compares to the same period in 2022 with a growth rate of 3.7%.

The service sector recorded the highest growth of 10.1 % followed by the agriculture sector with a growth of 4.8% and the industry sector of -3.2 %.

Below is the Key highlights

The first quarter of 2023 witnessed notable developments in various sectors of the economy, significantly impacting the overall gross domestic product (GDP) growth.

Key sub-sectors, including public administration, defense and social security, health, education and information and communication played a vital role in driving the economy forward.

While certain sectors experienced remarkable expansion, others faced contraction during this period. Let’s delve into the details of these trends and their implications.

Growth drivers: The primary contributors to the GDP growth in Q1 2023 were the public administration, defense and social security, health, education and information and communication sub-sectors.

These sectors showcased substantial progress and made significant positive impacts on the economy. Their combined efforts resulted in a remarkable upswing in the GDP figures for the quarter.

Expanding sub-sectors: Several sub-sectors stood out with impressive growth rates, exceeding 10% during the first quarter of 2023.

Among them, the Public Administration, Defense & Social Security sectors recorded an exceptional growth rate of 37.6%.

This significant expansion was closely followed by the Health & Social Work sector, which grew by 31.6%.
Additionally, the Education sector experienced a notable growth rate of 26.0%, while the Information & Communication sector witnessed a robust expansion of 18.9%.

Contracting Sub-sectors: Conversely, a number of sub-sectors faced contraction in Q1 2023, reflecting the challenges they encountered during this period.

These sectors experienced negative growth rates, affecting their respective contributions to the overall GDP. The following sub-sectors were among those that experienced contraction:

Water Supply, Sewerage, Waste Management & Remediation Activities: This sector witnessed a decline of 6.4% during the first quarter of 2023.

Construction: The construction industry faced a contraction of 6.0%, indicating a challenging period for this sector.

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles: This sub-sector experienced a decline of 5.3%.

Fishing: The fishing industry encountered a contraction of 3.3%, impacting its overall performance.
Mining and Quarrying: This sector faced a decline of 2.9% during the first quarter of 2023.

Manufacturing: The manufacturing sector experienced a contraction of 2.5%. Hotels and Restaurants: Although relatively minor, this sub-sector faced a slight contraction of 0.2%.