Ghana experienced a deceleration in economic growth during the fourth quarter of the previous year, primarily due to a decline in the industrial sector’s performance, as reported by the country’s statistics agency on Monday.
According to the data, the gross domestic product (GDP) increased by 3.6% year-on-year in the fourth quarter, a significant decrease from the revised growth rate of 7.5% recorded in the third quarter.
For the year 2024, economic growth is projected to be 5.7%.
The growth observed in the fourth quarter was largely attributed to the services sector, which expanded by 6.3%, alongside agriculture, which saw an increase of 2.9%. In contrast, the industrial sector experienced minimal growth of only 0.2%, as noted by government statistician Samuel Kobina Annim.
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Ghana is gradually recovering from its most severe economic crisis in a generation, which has been exacerbated by challenges in the crucial cocoa and gold sectors.
In February, Ghana’s consumer inflation rate decreased for the second consecutive month, falling to 23.1% from 23.5% in January.
Despite this decline, the inflation rate remains significantly above the Bank of Ghana’s target of 8%, with an allowable margin of 2 percentage points on either side.
President John Dramani Mahama, who resumed office in January, has pledged to reduce taxes and government spending to stimulate investment and promote economic growth.
