Saturday, 22 June 2019

Economy expands by 6.7% in Q1 2019

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Ghana’s economy has expanded by 6.7 percent for the first quarter of 2019 compared to 5.4 percent recorded during the same period last year. Gross Domestic Product (GDP) for the first quarter of 2019 grew by 6.7% compared to 5.4% recorded for the first quarter of 2018. The non oil economy growth stood at 6 percent.
“Economic growth is expected to be stronger in 2019, but over the medium term a more diversified economy is vital,” said Henry Kerali, World Bank Country Director for Ghana. “Addressing the remaining vulnerabilities in the financial sector is urgent and will require additional efforts in 2019, and over the medium term.”  
The report projects Ghana’s economic growth to increase to 7.6 percent in 2019, driven by both the oil and non-oil sectors. Growth in the non-oil sector is expected to accelerate as policy interventions in agriculture and industry will revitalize the productive sectors. The report recommends the need to better invest Ghana’s current natural resource wealth in non-natural resource sectors for sustainable growth in the medium-to-long-term.
According to the Government Statistician Prof Samuel Anim said, “Despite the industrial Sector recording the highest growth rate of 8.4 percent, the Information Communication and Technology sub sector increased growth from 16.3 percent to 37 percent, making it the highest contributor to the rate” .
In the Agriculture sector, the livestock sub-sector recorded the highest year-on-year growth rate of 5.5 % while the Forestry and logging sub-sector recorded the lowest, with a contraction (-5.8 %).
The crops sub-sector grew by 2.4% in the 1st quarter of 2019, compared to 0.6% in the 1st quarter of 2018.
The fishing sub-sector recorded a growth of rate of -1.5 per cent within the Agriculture sector.
The year-on-year quarterly GDP growth rate for the Industry sector was 8.4% for 2019.
The Mining & Quarrying sub-sector recorded the highest year-on-year quarterly GDP growth rate of 20.9% for 2019Q1, while the construction sub-sector recorded the lowest, with a contraction (-8.7%).
For the first quarter of 2019, the Services sector recorded a year-on-year quarterly GDP growth rate of 7.2%.
The Information & Communication sub-sector recorded the highest year-on-year quarterly GDP growth rate of 37.0% while the Finance & Insurance sub-sector recorded the lowest growth of 2.1%.

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