The Ghana Statistical Service (GSS) has disclosed that the Ghana provisional real Gross Domestic Product (GDP) in volume terms is estimated to have increased by 4.2% in quarter one (January to March) of 2023 compared to the same period in 2022.

Explaining further, GSS noted that when seasonally adjusted, Ghana’s real GDP increased by 1.1 % in quarter one (January to March) of 2023; 0.3 percentage points higher than what was recorded in quarter four (October to December) of 2022.

Meanwhile, Public Administration, Defense & Social Security, Health, Education, Information & Communication sub-sectors were the main drivers of GDP growth for the first quarter of 2023.

The main sub-sectors with more than 10 percentage expansion in quarter one of 2023 are: Public Administration, Defense & Social Security (37.6%); Health & Social Work (31.6%); Education (26.0%); and Information & Communication (18.9%).

Seven sub-sectors contracted

However, the Ghana Statistical Service disclosed that seven sub-sectors contracted in quarter one of 2023.

The sub-sectors that contracted are: Water Supply, Sewerage, Waste Management & Remediation Activities (- 6.4%); Construction (-6.0%); Wholesale and retail trade, repair of motor vehicles and motorcycles (-5.3%); Fishing (-3.3%); Mining and quarrying (-2.9%); Manufacturing (-2.5%); and Hotels and Restaurants (-0.2%).

The GDP represents the total value of final goods and services produced during a year. Gross Domestic Product growth is the main indicator of economic performance. There are three approaches used to measure GDP: the output approach, the expenditure approach, and the income approach.

However, Fitch Solutions predicted that the Ghanaian economy will weaken in 2023, with real GDP growth slowing to 2.9%, from an estimated 3.3% in 2022.

According to Fitch Solutions, while healthy export growth will provide some support to the economy, domestic demand will soften on still-elevated price pressures, fiscal consolidation and weaker access to credit for both businesses and the government.

While uncertainty around Ghana’s external debt restructuring programme and exchange rate volatility pose downside risks to Ghana’s short-term economic outlook, Fitch Solutions forecast real GDP growth in Ghana to slow to 2.9% in 2023, from an estimated 3.3% in 2022.

Data released by Ghana Statistical Service showed that Ghana’s real GDP growth weakened significantly in Q3 of 2022 to 2.9% year-on-year, from 4.7% in Q222. While the mining sector recorded robust growth of 14.9%, a 7.4% contraction in the manufacturing sector and a 7.0% decline in the construction industry weighed on overall economic activity.

Moreover, the gross domestic product in current prices in Ghana was forecast to continuously increase between 2023 and 2028 by in total 20 billion U.S. dollars (+30.02 percent). The GDP is estimated to amount to 86.62 billion U.S. dollars in 2028.

The gross domestic product at current prices is based upon the GDP in national currency converted to U.S. dollars using market exchange rates (yearly average).