African markets

Ghana’s economy grew by 5.4% in 2021 – ESG

Ghana’s economy grew by 5.4% in 2021, much more than the 0.4% recorded in 2020, a period during which the COVID-19 pandemic severely affected the global economy.

Without oil, the economy recorded a Gross Domestic Product (GDP) growth rate of 6.9%

According to a provisional estimate by the Ghana Statistical Service, only 10 countries in Africa have recorded higher growth rates than Ghana. They included Ivory Coast and Uganda.

The strong growth rate was driven by the services sector, in particular information, communication and technology (33.1%) and the agriculture sector, such as fishing (13.4%).

The services sector recorded the highest GDP growth rate of 9.4% in 2021.

The information and communication sub-sector recorded the highest year-on-year GDP growth rate of 33.1%, while the education sub-sector recorded the lowest (-3 .7%).

Hotels and Restaurants and Financial and Insurance Activities grew by 4.3% and 2.4% respectively.

Agriculture sector grew by 8.4% in 2021. Fisheries sub-sector recorded the highest year-on-year growth rate of 13.4%, while the forestry and logging sub-sector recorded the lowest (4.7%). Livestock and crops recorded growth rates of 5.5% and 8.9%.

The industry, however, contracted by 0.8% for 2021. This was influenced by the contraction of the mining and quarrying sub-sector (12.1%).

The water and sanitation sub-sector recorded the highest annual GDP growth rate of 13.3% in 2021.

Manufacturing, electricity and construction increased by 7.8%, 7.4% and 5.7% respectively.

The quarterly year-on-year GDP growth rate for the 4th quarter of 2021, however, was 7.0% compared to 4.3% recorded for Q4 2020.

The corresponding GDP per capita for 2021 was GH₵14,891.37 (US$2,565).

The size of the economy, however, stood at GH₵459.130 billion.