3rd quarter real GDP growth records -0.3%

Prof. Samuel Annim

Ghana's provisional real Gross Domestic Product (GDP) in volume terms was estimated to have contracted by 1.1% in quarter three (July to September) of 2020, compared to the same period in 2019, but when seasonally adjusted, real GDP increased to -0.3% in quarter three (July to September) of 2020 from -0.8% recorded in quarter two (April to June) of 2020.

According to the Ghana Statistical Service (GSS), which made this known, this shows signs to recovery since the Covid-19 arrived in Ghana.

It said the main sub-sectors that expanded in quarter three of 2020 included Information & Communication (51.3%); Fishing (20.4%); Real Estate (12.2%); and Electricity (11.6%), while key sub-sectors that contracted were Hotel and Restaurants (-62.1%); Mining and Quarrying (-16.9%); Trade, Repair of Vehicle, Household Goods (-7.7%); and Forestry & Logging (-6.8%).

Value

The GSS noted that the GDP (Including Oil & Gas) estimate at constant 2013 prices for the third quarter of 2020 was GH¢41,059.6 million compared to GH¢41,511.4 million in the third quarter of 2019.

It also said the Non-oil GDP at constant 2013 prices for the third quarter of 2020 was GH¢37,790.9 million, compared to GH¢37,951.2 million in the third quarter of 2019.

Nominally, the GDP estimate at current prices in purchaser's value for the third quarter of 2020 was GH¢92,223.9 million compared to GH¢85,551.8 million in the third quarter of 2019, while the Non-oil GDP (GDP without Oil and Gas) estimate at current prices for the third quarter of 2020 was GH¢89,424.5 million compared to GH¢81,855.7 million in the third quarter of 2019.

Details of sectoral performance

The Agriculture Sector was the main driver of GDP growth, recording 8.3% in the third quarter of 2020. The Fishing sub-sector grew by 7.7% in the third quarter of 2020, compared to 0.05% in the second quarter of 2020. The Crop subsector also grew by 2.2% compared to 0.6% recorded in the second quarter of 2020, while the Livestock sub-sector grew at a slightly lower rate of 1.1% in the third quarter of 2020, compared to a growth of 1.2% in the second quarter of 2020. The Forestry and Logging subsector contracted by 1.8% compared to a contraction of 2.1% in the second quarter of 2020.

Within the Industry sector, the Electricity sub-sector recorded 2.8% in the third quarter of 2020, compared to 3.5% growth recorded in the second quarter of 2020. Water Supply, Sewerage, Waste Management & Remediation Activities sub-sector grew by 1.4% in the third quarter of 2020, compared to 2.4% in the second quarter of 2020. Construction sub-sector grew by 1.0% in third quarter of 2020, compared to 0.9% in the second quarter of 2020. Manufacturing recovered from a contraction of -3.6% in second quarter of 2020 to record a 1.1% growth rate in the third quarter of 2020. The Mining and Quarrying sub-sector contracted by -4.5% in the third quarter of 2020, from -1.4% recorded in the second quarter of 2020.

In the Services sector, Information and communication grew by 8.2% in the third quarter of 2020 compared to 15.7% in the second quarter of 2020. The Real Estate also slowed to 3.2% in the third quarter of 2020 from 0.8% recorded in the second quarter of 2020. Compare to second quarter of 2020, the Public Administration & Defense, Social Security slowed down to a growth of 0.6% in the third quarter of 2020. There were contractions in the sub-sectors of Hotel and Restaurants (-18.8%) and Trade, Repair of Vehicle, Household Goods (-2.0%)

GDP is Ghana's official measure of economic growth and is calculated in three different approaches – the production approach, expenditure approach and income approach. The production approach is used to calculate Ghana's GDP on a quarterly basis.

The next release will be in April 20, 2021.

---Daily Guide