Ghana’s Economy Grows by 5.7% in 2024 Despite Sharp Q4 Slowdown

Ghana’s economy expanded by 5.7% in 2024, according to provisional data from the Ghana Statistical Service. However, this strong annual growth masked a significant slowdown in the final quarter, with GDP growth plunging to 3.6% in Q4—the lowest quarterly rate of the year—down from 7.2% in Q3.

Ghana’s economy demonstrated strong growth in the first three quarters of 2024, accelerating from 5.1% in Q1 to 7.5% in Q2, before slightly slowing to 7.2% in Q3. However, this momentum reversed sharply in Q4, as growth slumped to 3.6%, the weakest quarterly performance of the year.

On a quarter-on-quarter basis, GDP grew by just 0.9% in Q4, the lowest in five quarters, indicating a significant loss of momentum. The slowdown was largely driven by contractions in key industrial sectors, particularly Mining and Quarrying (-8.2%), Oil and Gas: (-8.7%) and Gold Production (-8.4%)

These declines erased the robust gains seen in the first three quarters, where mining and quarrying had expanded by 12.8% in Q1, 20.6% in Q2, and 17.3% in Q3 before reversing in Q4. Similarly, oil and gas, which grew 16.1% in Q1 and 8.2% in Q2, saw back-to-back contractions of -5.7% in Q3 and -8.7% in Q4.

Meanwhile, gold production, which had surged by 42.9% in Q2 and 44.4% in Q3, also contracted by -8.4% in Q4, indicating a sharp reversal in Ghana’s mining sector.

Ghana’s cocoa industry, a major driver of the agricultural sector, continued its prolonged downturn, contracting by -21.4% in Q4 2024. This marks the sixth consecutive quarterly decline, following steep contractions of -26% in both Q2 and Q3.

For the entire year 2024, the cocoa sector contracted by -22.4%, the worst annual decline in recent history. This prolonged downturn was a key drag on agriculture, which grew by just 2.9% in Q4, largely supported by a 9.2% expansion in fishing.

The services sector remained the backbone of Ghana’s economy, contributing 47% of GDP in 2024. It posted solid growth of 6.3% in Q4, maintaining resilience despite broader economic headwinds. Information and Communication was a key driver, expanding by 14.9% in Q4 and averaging close to 15% growth over the past three years.

The industry sector, which accounted for 30.8% of GDP, was the weakest-performing sector in Q4, expanding by just 0.2%.

Despite industries poor outturn, one bright spot in the industrial sector was construction, which grew by 10.7% in Q4, matching its Q3 performance and marking its fourth consecutive quarter of expansion. This is in stark contrast to 2023, when construction contracted in all four quarters.

However, this strong growth in construction was not enough to offset declines in mining, oil and gas, and gold production, which dragged overall industrial growth down to just 0.2% in Q4.

The agriculture sector, contributing 22.2% to GDP, recorded modest growth of 2.9% in Q4, supported by fishing (+9.2%). However, forestry and logging continued its decline, contracting for the eighth straight quarter (-5.3%).

Despite strong annual growth of 5.7% in 2024, the sharp Q4 slowdown raises concerns about whether the economy can sustain its momentum in 2025 amidst concerns its growth has mainly been on the back of mining.

The continued decline in cocoa production (-22.4% annually), contractions in mining (-8.2%), and slowing industrial output could pose significant challenges for Ghana’s economic stability.

Source: ceditalk.com