Ghana's economy grew by 5.3%

Ghana's economy grew by 5.3% in the second quarter of 2014 compared to the 10.8% recorded in the second quarter of 2013.

The acting Government Statistician, Dr Philomena Nyarko, has projected the economy to grow at 6.9 per cent in 2014, which is below the government's target of eight per cent set for the close of the year.

“The economy will grow at 6.9 per cent in 2014,” she said at a press conference in Accra.

The Agric Sector remains the least contributor to Ghana's economic growth despite recording the highest growth. 

According to the latest GDP figures, the sector contributed only 12 percent to the economic growth, but recorded the highest growth of 8.5 percent.

 
Below is the full GDP statement for the second quarter

 
Real Gross Domestic Product (GDP) for the second quarter of 2014 grew by 5.3 per cent (year-on-year)

Real Gross Domestic Product (GDP) for the second quarter of 2014 grew by 5.3% (year-on-year [1] ) compared to the 10.8% recorded in the second quarter of 2013. The Agricultural sector recorded the highest growth of 8.5%, while Services recorded a growth rate of 2.1%; however, the Industry Sector followed with a negative growth rate of -0.5% (see Table 1.)

Key findings of the performance of activities in the 2 nd quarter of 2014 compared with the 2nd quarter of 2013 by economic activities were as follows:

Livestock production expanded by 36.7%;
Financial and insurance activities increased by 21.0%;

Forestry and logging activities by 13.5%;
Mining and quarrying activities was up by 8.4%; and

Education increased by 8.8%.
 
Real Gross Domestic Product growth rate for the second quarter of 2014 was 3.3% per cent quarter-on-quarter [2] , seasonally adjusted 

Seasonally adjusted quarter-on-quarter estimates of the real GDP grew by 3.3% in the second quarter of 2014 over the estimates for the first quarter of 2014 2.0% as depicted in Table 2.

The most notable performances were as follows:

Public administration, 18.4%;
Forestry and logging activities, 8.9%;
Mining and quarrying activities, 6.1%
Wholesale and retail trade; repair of motor vehicles and motorcycles, 5.9%; and

Transport and storage activities, 4.7%.
Key economic developments for second quarter of 2014 seasonally adjusted

In the Agricultural sector, economic activity in the Crops and cocoa subsector increased by 0.2 percentage from a percent growth recorded in the 1 st quarter of 2014. This is due to an increase in the production of cocoa by 4.3%.

Economic activities in the Mining and Quarrying subsector within the Industry sector slowed by 1.7 percentage point from 7.8% growth recorded in the 1 st quarter of 2014. This was due to a decline in the production of Gold and Manganese by 12.8% and 29.7% respectively.

The Manufacturing subsector recorded a negative growth of 5.4% over the 1 st quarter of 2014 marginal growth of 0.2%. This is partly due to no production of petroleum by TOR in 2014 and other unfavorable economic and environmental factors being faced by the subsector.

There were declines in the production of Electricity by 1.8%, hotel and restaurant activities by 1.0%, and fishing activities by 10.3% over the first quarter of 2014 growth (-1.8%, 5.4% and 14.1% respectively).

Most of the sub-sectors, especially in the Services sector, showed no evidence of seasonality. These subsectors include the following:

Real Estate, Professional, Administrative & Support Service activities

Education
Financial and Insurance activities
Information and Communication activities
Public administration
Transport and storage activities
Nominal GDP (current prices) estimate was GH¢26,079.6 million for the 2 nd quarter of 2014

The Oil GDP estimate at current prices for the 2 nd quarter of 2014 was GH¢ 27,203.6 million compared to GH¢26,079.6 in the 1st quarter of 2014 (See Table 3).

The Non-oil GDP at current prices for the 2 nd quarter of 2014 was GH¢25,259.7

 Million compared to GH¢23,553.7 million in the 1 st quarter of 2014.

Structure of the economy
The sectoral contribution in the first quarter of 2014, were as follows:

Agriculture, 11.8%
Industry, 30.4%
Services, 57.8%
 
 

Forthcoming Publications    
 
 Issue
Expected date of publication
 
Third quarter of 2014
December 17, 2014

 
 
 
 
Fourth quarter of 2014
April 15, 2015
 
ADDITIONAL INFORMATION
Sources and methods
This Statistical Release contains independently compiled quarterly estimates of the gross domestic product (GDP) for the second quarter of 2014. The estimates are based on the 1993 System of National Accounts (SNA), International Standard Industrial Classification Revision 4 published by the United Nations and other international organizations and the Quarterly National Accounts Manual: Concepts, Data Sources, and Compilation prepared by 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, 2006.

The Annual GDP estimates are derived as the sum of the four quarters. Short-term indicators are used to estimate the quarterly GDP (ref Quarterly National Accounts Manual: Concepts, Data Sources, and Compilation - IMF) and benchmarked to the annual GDP. Note that the same methods are employed for the estimation of both the quarterly and annual GDP.

Seasonal adjustment
The quarterly value added and GDP estimates have been seasonally adjusted. Seasonal adjustment is the process of estimating and removing seasonal effects from time series to reveal non-seasonal features. This process is to provide a clearer view of short term movements and trends and also to allow earlier identification of turning points.

Revision Policy
While the majority of revisions are made to the four most recent quarters of the series, there is no restriction on when an estimate of the quarterly series for a given period can be revised. The main causes of revisions are as follows:

Incorporation of additional and improved data: Most revisions reflect the incorporation of a wider range of data. In particular, some data that were not available at the release date are incorporated through revisions into subsequent releases. 

Reconciliation of quarterly and annual measures: The process of reconciling the quarterly measures with the annual measures can lead to further revisions. The quarterly measures of these series are based on a smaller range of data than the annual measures.

The estimates for the four quarters of 2013 GDP estimates have been revised for some sectors due to additional information obtained. These sectors are:

Mining and quarrying
Manufacturing
Wholesale and retail trade; repair of motor vehicles and motorcycles

Hotels and restaurant activities
Transport and storage activities
Information and Communication activities
Real Estate, Professional, Administrative & Support Service activities; and

Community, social and personal activities
However, the 2013 and 2014 quarterly GDP estimates may be further revised on the basis of additional data being made available.

The 2012 QGDP estimates have all been revised and finalized.

Related publications
Users may also wish to refer to the following publications from the GSS website:  www.statsghana.gov.gh

2014 second quarter GDP bulletin and time series
Producer Price Index
Consumer Price Index

Table 1:  Quarterly Value Added and Gross Domestic Product at Constant 2006 Prices by Economic Activity

Year
Quarter
Quarterly Value Added  (GHc Million)
Year-on-Year change (%)

Agriculture
Industry
Services
Total**
Agriculture
Industry
Services
Total**

2010_Q1
   1,013.9
   1,275.5
    3,064.8
    5,507.4
1.2 
8.7 
15.5 
8.6 

2010_Q2
       887.4
   1,229.4
    2,771.0
    5,124.3
12.1 
3.8 
4.3 
5.5 

2010_Q3
   2,273.3
   1,229.2
    2,946.7
    6,767.7
9.6 
5.0 
11.8 
10.7 

2010_Q4
   2,278.0
   1,318.9
    2,931.9
    6,852.6
0.7 
10.3 
7.8 
6.9 

2011_Q1
   1,012.7
   1,519.9
    3,241.4
    6,124.8
-0.1 
19.2 
5.8 
11.2 

2011_Q2
       903.3
   1,752.1
    3,105.8
    6,102.3
1.8 
42.5 
12.1 
19.1 

2011_Q3
   2,286.8
   1,898.2
    3,198.6
    7,719.2
0.6 
54.4 
8.6 
14.1 

2011_Q4
   2,304.4
   1,987.0
    3,266.9
    7,945.0
1.2 
50.7 
11.4 
15.9 

2012_Q1*
   1,005.9
   1,954.0
    3,420.0
    6,703.0
-0.7 
28.6 
5.5 
9.4 

2012_Q2
       857.0
   1,927.0
    3,506.5
    6,703.6
-5.1 
10.0 
12.9 
9.9 

2012_Q3
   2,262.7
   2,028.2
    3,569.5
    8,237.5
-1.1 
6.8 
11.6 
6.7 

2012_Q4
   2,531.3
   2,038.3
    3,724.7
    8,698.6
9.8 
2.6 
14.0 
9.5 

2013_Q1*
   1,123.5
   2,112.1
    3,829.6
    7,304.9
11.7 
8.1 
12.0 
9.0 

2013_Q2*
       920.8
   2,235.0
    3,889.6
    7,429.2
7.4 
16.0 
10.9 
10.8 

2013_Q3*
   2,390.9
   2,072.8
    3,843.1
    8,596.4
5.7 
2.2 
7.7 
4.4 

2013_Q4*
   2,618.2
   2,108.4
    4,020.6
    9,252.0
3.4 
3.4 
7.9 
6.4 

2014_Q1**
 
   1,209.3
   2,171.0
    3,859.4
    7,781.0
7.6 
2.8 
0.8 
6.5 

2014_Q2**
       998.9
   2,224.8
    3,971.3
    7,825.8
8.5 
-0.5 
2.1 
5.3 

*revised                

 **provisional              
           
 

Table 2:  Seasonal Adjusted Quarterly Value Added and Gross Domestic Product at Constant 2006 Prices by Economic Activity

Year
Quarter
Quarterly Value Added  (GHc Million)
Quarter-on-Quarter Change (%)

Agriculture
Industry
Services
Total GDP**
Agriculture
Industry
Services
Total**

2010_Q1
   1,523.0
   1,250.1
   2,983.7
       6,130.0
-2.9 
4.8 
12.5 
6.5 

2010_Q2
   1,683.0
   1,206.8
   2,764.2
       5,767.0
10.5 
-3.5 
-7.4 
-5.9 

2010_Q3
   1,651.0
   1,242.9
   2,935.9
       5,936.0
-1.9 
3.0 
6.2 
2.9 

2010_Q4
   1,585.0
   1,354.5
   3,036.7
       5,980.0
-4.0 
9.0 
3.4 
0.7 

2011_Q1
   1,688.0
   1,491.7
   3,165.1
       6,447.0
6.5 
10.1 
4.2 
7.8 

2011_Q2
   1,624.0
   1,746.1
   3,122.3
       6,557.0
-3.8 
17.1 
-1.4 
1.7 

2011_Q3
   1,490.0
   1,897.6
   3,202.6
       6,624.0
-8.3 
8.7 
2.6 
1.0 

2011_Q4
   1,549.0
   2,022.0
   3,321.1
       6,809.0
4.0 
6.6 
3.7 
2.8 

2012_Q1
   1,604.7
   1,978.9
   3,363.2
       7,165.0
3.6 
-2.1 
1.3 
5.2 

2012_Q2
   1,604.7
   1,887.1
   3,512.7
       7,593.0
0.0 
-4.6 
4.4 
6.0 

2012_Q3
   1,619.7
   2,030.6
   3,595.3
       7,656.0
0.9 
7.6 
2.4 
0.8 

2012_Q4
   1,746.5
   2,057.9
   3,752.4
       7,872.0
7.8 
1.3 
4.4 
2.8 

2013_Q1*
   1,706.5
   2,098.4
   3,797.1
       7,956.0
-2.3 
2.0 
1.2 
1.1 

2013_Q2*
   1,703.3
   2,218.3
   3,895.0
       8,334.0
-0.2 
5.7 
2.6 
4.8 

2013_Q3*
   1,707.7
   2,083.0
   3,885.8
       7,977.0
0.3 
-6.1 
-0.2 
-4.3 

2013_Q4*
   1,789.9
   2,131.3
   3,999.9
       8,314.0
4.8 
2.3 
2.9 
4.2 

2014_Q1**
 
   1,859.0
   2,168.2
   3,836.8
       8,483.0
3.9 
1.7 
-4.1 
2.0 

2014_Q2**
   1,805.0
   2,203.2
   3,979.1
       8,759.0
-2.9 
1.6 
3.7 
3.3 

*revised                

 **provisional              
 
 

Table 3: Quarterly GDP at current Prices by Economic Activity and respective sectoral distribution        

Year
Quarter
 Value Added  (GHc Million)
% of GDP (@ basic prices) Y-Y

Agriculture
Industry
Services
Total Value added (GDP_@_basic prices)
Net indirect Taxes
FISIM
Total (GDP_in purchaser's_value)
Agriculture
Industry
Services
Total Value added (GDP_@_basic prices)

2010_Q1
      2,424.4
     2,101.1
     6,170.6
    10,696.0
          345.6
 
    11,041.7
22.7 
19.6 
57.7 
100.0 

2010_Q2
      1,854.3
     1,952.8
     4,865.0
      8,672.1
          598.2
 
      9,270.3
21.4 
22.5 
56.1 
100.0 

2010_Q3
      4,290.7
     1,972.9
     5,386.3
    11,649.8
          852.3
 
    12,502.1
36.8 
16.9 
46.2 
100.0 

2010_Q4
      4,340.3
     2,267.6
     5,761.8
    12,369.7
          858.3
 
    13,228.0
35.1 
18.3 
46.6 
100.0 

2011_Q1
      2,305.3
     3,004.6
     7,351.8
    12,661.6
          958.8
 
    13,620.5
18.2 
23.7 
58.1 
100.0 

2011_Q2
      1,824.5
     3,547.8
     7,441.6
    12,813.9
          967.3
 
    13,781.1
14.2 
27.7 
58.1 
100.0 

2011_Q3
      4,705.2
     3,755.0
     5,977.3
    14,437.6
          957.0
 
    15,394.6
32.6 
26.0 
41.4 
100.0 

2011_Q4
      5,319.8
     3,966.9
     6,652.0
    15,938.7
       1,081.4
 
    17,020.1
33.4 
24.9 
41.7 
100.0 

2012_Q1
      2,733.3
     4,834.8
     7,503.0
    15,071.0
       1,109.8
      484.2
    15,696.6
18.1 
32.1 
49.8 
100.0 

2012_Q2
      2,324.8
     4,966.1
     8,044.2
    15,335.1
       1,164.1
      500.2
    15,999.0
15.2 
32.4 
52.5 
100.0 

2012_Q3
      5,757.1
     5,347.9
     8,453.4
    19,558.4
       1,115.1
      587.6
    20,086.0
29.4 
27.3 
43.2 
100.0 

2012_Q4
      5,852.9
     5,638.7
   11,130.9
    22,622.5
       1,299.7
      744.7
    23,177.5
25.9 
24.9 
49.2 
100.0 

2013_Q1*
 
      3,144.6
     6,638.1
   10,353.8
    20,136.5
       1,231.2
      724.9
    20,642.8
15.6 
33.0 
51.4 
100.0 

2013_Q2*
 
      2,786.4
     6,498.7
   11,128.2
    20,413.3
       1,392.2
      759.8
    21,045.8
13.7 
31.8 
54.5 
100.0 

2013_Q3*
 
      7,025.2
     6,258.7
   11,883.5
    25,167.3
       1,486.9
   1,060.0
    25,594.3
27.9 
 24.9
47.2 
100.0 

2013_Q4*
 
      7,012.6
     6,665.3
   11,945.4
    25,623.3
       1,835.4
      874.3
    26,584.4
  27.4
 26.0
   46.6
100.0 

2014_Q1**
 
      3,691.7
     8,348.0
   13,088.1
    25,127.8
       1,979.1
   1,027.2
    26,079.6
  14.7
 33.2
   52.1
100.0 

2014_Q2**
      3,076.1
     7,937.7
   15,117.0
    26,130.7
       2,160.4
   1,087.5
    27,203.6
  11.8
 30.4
   57.8
100.0 

*revised