2020 Q1: Economy grows by 4.9% as agric sector expanded by 2.8%

The Ghana Statistical Service (GSS) has revealed, Ghana’s economy grew by 4.9% in the first quarter of 2020, compared to a growth rate of 6% of Gross Domestic Product the same period in 2019.

The services sector recorded the highest growth rate of 9.5% followed by the Agriculture sector which expanded by 2.8% and the Industry sector by 1.5%.

The main sub-sectors driving GDP growth in January to March 2020 GDP were Information & Communication, Manufacturing, Education and Public Administration & Defence, Social Security.

Importantly, the services sector was the main driver of Gross Domestic Product growth contributing 3.6 percentage points to an overall GDP growth rate of 4.9% in quarter one, 2020.

From the figures above, the services sector GDP particularly was not impacted by Coronavirus in the first quarter because the lockdown took place on the last day of March 2020.

In the services sector, information and communication grew by 17.1% in the 1st quarter of 2020 compared to 14.6% in the 4th quarter of 2019.

The Real Estate, however, slowed to 3.8% in the 1st quarter of 2020 from 6.8% recorded in the 4th quarter of 2019.

Compared to the 4th quarter of 2019, the Public Administration & Defence, Social Security expanded to 3.3% in 2020Q1.

There were contractions in the sub-sectors: Trade, Repair of Vehicle, Household Goods (-1.0%) and the Professional, Administrative & Support (-1.5%) sub-sectors.

Within the industry sector, the electricity sub-sector recorded 4.1% GDP in the first quarter of 2020, compared to 2.6% growth recorded in the 4th quarter of 2019.

Water supply, sewerage, waste management & remediation activities sub-sector grew by 2.5% in quarter one of 2020, compared to -0.5% in the 4th quarter of 2019. Manufacturing sub-sector grew by 1.3% in the 1st quarter of 2020, compared to 1.8% in the 4th quarter of 2019.

The mining and quarrying sub-sector, however, slowed to 0.3% in the 1st quarter of 2020, from 1.6% recorded in the 4th quarter of 2019

Construction recorded the least growth rate of the growth rate of -1.7% in the First quarter of 2020 compared to -0.6% in the 4th quarter of 2019.

In the agriculture sector, fishing sub-sector grew by 2.6% in the first quarter of 2020, compared to 2.2% in the 4th quarter of 2019.

The livestock subsector recorded a 1.3% growth rate compared to 1.7% growth rate recorded in the 4th quarter of 2019.

The crops sub-sector grew by 0.6% in the 1st of 2020, compared to 2.0% in the 4th quarter of 2019.