Gold and bauxite help 1st quarter GDP growth
6/28/2012 11:30:22 PM -
According to the Ghana Statistical Service, the total value of goods and services produced in Ghana grew by 8.7% in the first quarter of 2012, relative to that of 2011.
A newsletter from the GSS shows that the Industry sector was the main reason for this growth.
Gold and bauxite production led the Mining and Quarrying sub sector to grow by almost half. And with help from other sub sectors such as manufacturing and construction, Industry sector production rose by 22% relative to the first quarter of 2011.
The Agricultural sector did not fare as well as the Industry sector. Relative to last year's first quarter, agric fell by 3%. And compared to the fourth quarter of 2011, agric production in the first quarter of 2012 fell by more than half the value in the fourth quarter of 2011.
Experts attribute the poor showing of agric relative to the last quarter of 2011 on the seasonality of the agric sector, with land preparation normally done in the first two quarters.
Trends from the GSS newsletter show that the first and second quarter yielded the lowest gains in agriculture yearly.
According to the CIA's fact sheet on Ghana, agric employs over half of Ghana's labour force, but it contributes to less than 30% of Ghana's GDP.
Although the Producer Price Index - the measure of the average change over time in prices received by domestic producers for the production for their commodities - increased to 18% in May 2012, agriculture sector workers might not readily benefit from this increase.
The losses in the agric sector coupled with the increase in the cost of production (PPI) should lead to an increase in food prices. But this will not necessarily lead to increased financial gains for agric workers.