Ghana’s GDP falls below projected figure for 2013

Gross Domestic Product (GDP) data for 2013 showed an overall growth of 7.1 per cent against a target of 8.0 per cent.

Mr Seth Terkper, the Minister of Finance and Economic Planning who said this in Parliament on Wednesday, said the 7.1 per cent growth showed a robust and strong performance, especially when compared to the sub-Saharan average of 4.9 per cent.

Presenting the mid-year review of the Budget Statement and the Economic policy and Supplementary Budget Estimates of the government for the 2014 fiscal year, he said even though the 2013 GDP growth rate was slightly lower than projected, both the real and nominal GDP values were higher than projected.

“…the real GDP in 2013 was GH¢32,507 million against a target of GH¢32,109 million for the year. In nominal terms, GDP was GH¢93,461 million, against a projected amount of GH¢ 88,764 million,” he said.

The 2013 macroeconomic targets projected real overall GDP growth including oil of 8.0 per cent; real non-oil GDP growth of 6.5 per cent; end period inflation of 9.0 per cent; average inflation of 8.9 per cent; overall budget deficit equivalent to 9.0 per cent of GDP; and gross International Reserves of not less than three months of import cover for goods and services.

On sector performance, Mr Terkper said the services sector was the largest contributor to GDP, with a growth of 8.9 per cent in 2013, compared to 11.0 per cent in 2012.

Key performing subsectors in the services sector were the Information and Technology, 24.7 per cent, Financial and Insurance Activities, 23.2 per cent, Public Administration and Defence; Social Security, 9.1 per cent and the Health and Social Work, 7.8 per cent subsectors.

“The Industry sector recorded a growth of 7.0 per cent, down from 11.0 per cent in 2012 on account of strong performances in the Mining and Quarrying (11.7 per cent), Electricity (16.1 per cent) and the Construction (8.6 per cent) sub-sectors.

Upstream petroleum activities also grew by 18.0 per cent compared to 21.6 per cent in 2012. The Manufacturing sub-sector, however, continued with its declining growth trend by recording a growth of 0.6 per cent in 2013, with the Water and Sewerage sub-sector declining by 1.4 per cent.

Mr Terkper said the Agriculture sector doubled its growth rate of 2.3 per cent in 2012 to 5.2 per cent in 2013. That, he said, was mainly on account of growth in the Crop sub-sector (5.9 per cent), Livestock sub-sector (5.3 per cent) and the Fishing sub-sector (5.8 per cent).

The Finance Minister said in terms of sector shares, the services sector increased its share of GDP from 48.4 per cent in 2012 to 49.5 per cent in 2013. The agriculture sector, on the other hand, continued to experience a declining share of GDP while the Industry Sector maintained its share of GDP.