Ghana’s economy expanded by 5.7% in 2024, reaching a total GDP of GH¢1.17 trillion. However, the fourth quarter of the year saw a significant slowdown, with growth dropping to 3.6% from the 7.2% recorded in the third quarter.
This decline was largely attributed to weaker performance in the Industry sector, particularly in mining and quarrying.
According to provisional data from the Ghana Statistical Service, the oil Gross Domestic Product (GDP) contributed GH¢1.098 trillion, while net indirect taxes amounted to GH¢77.80 billion. The nominal GDP at basic prices stood at GH¢308.08 billion in the fourth quarter.
Services sector remains dominant
The Services sector retained its position as the largest contributor to the economy, accounting for 49.2% of total GDP. In absolute terms, the sector was valued at GH¢515.85 billion.
Within the sector, Information and Communication recorded the highest growth rate of 15.8%, highlighting the increasing importance of digital services in Ghana’s economy.
The Financial and Insurance sub-sector also showed strong expansion at 7.6%, indicating a growing financial services market. However, the Other Personal Services Activities sub-sector was the only area to record a contraction.
Industry sector’s mixed performance
The Industry sector, which contributed 31.9% to GDP (GH¢338.8 billion), recorded the highest overall growth rate of 7.1% in 2024.
The sector’s growth was largely driven by Construction, which grew by 9.6%, and Mining and Quarrying, which expanded by 9.4%.
Despite this overall positive growth, the sector faced a sharp contraction in mining and quarrying activities in the fourth quarter, contributing to the slowdown in the economy’s overall growth rate. Manufacturing, another key sub-sector, expanded at a modest rate of 3.9%, reflecting steady industrial activity.
Agriculture sector slows down due to cocoa decline
The Agriculture sector contributed 19% to GDP, amounting to GH¢243.74 billion, but recorded a relatively lower growth rate of 2.8%. The Livestock sub-sector showed the highest growth within the sector at 3.5%, followed by crops at 3.2%.
However, cocoa production experienced a severe contraction of 22.4%, significantly impacting the sector’s overall performance.
This sharp decline has raised concerns over the sustainability of cocoa farming and the need for policy interventions to stabilize the industry.
Debt-to-GDP ratio and economic outlook
Ghana’s debt-to-GDP ratio now stands at 61.8%, reflecting the country’s ongoing fiscal challenges.
While the overall economic growth in 2024 was strong, the slowdown in the final quarter suggests that key sectors, particularly Industry and Agriculture, require strategic support to sustain momentum.
Economic analysts suggest that policies aimed at boosting industrial productivity, strengthening the financial sector, and stabilizing agriculture—especially cocoa production—will be crucial in maintaining steady growth in the coming years.
