The Ghanaian economy expanded 3.3% in the fourth quarter (Q4) of 2020 as compared to the corresponding period in 2019. According to the GSS, this growth rate is lower than the 6.0% recorded in Q4 2019. This is according to the Fourth Quarter Gross Domestic Product figures released by the Ghana Statistical Service (GSS).
Meanwhile, the GDP growth rate without oil and gas (Non-Oil GDP) for Q4 2020 was 4.5%. This is also lower than a growth rate of 5.9% in the same period in 2019.
Overall, provisional figures from the Ghana Statistical Service show that Ghana’s economy grew 0.4% in 2020. The figure is lower than the 0.9% the Bank of Ghana forecast for the year. However, with the exclusion of oil, the economy grew at a rate of 1.3%. Despite missing the Central Bank’s target, Ghana was still among the few African countries that expanded in 2020.
The agriculture sector ended 2020 as the most resilient and best-performing sector. As such, the GSS attributed the performance of the country’s economy to the agriculture sector. This is because the sector recorded the highest growth of 8.2% in Q4 2020. The crop and cocoa sub-sector expanded 10.6% year-on-year in Q4 2020. Livestock and Fishing sub-sectors recorded annual growth rates of 5.1% and 1.6% respectively.
Overall, the agriculture sector recorded an annual growth rate of 7.4% in 2020. Within the Agriculture sector, the Fishing sub-sector recorded the highest year-on-year growth rate of 14.4 %. On the other hand, the Forestry and Logging sub-sector recorded the lowest growth rate as it contracted 9.2% in 2020.
Services & Industry sectors
Furthermore, the Services sector followed with a growth rate of 4.6% in Q4 2020. Real Estate recorded the highest growth rate of 43.5% in Q4 2020. The Information & Communication sub-sector followed with a growth rate of 22.5%. Also, Public Administration, Defense & Social Security recorded a growth rate of 16.4% in the last quarter of 2020. Unsurprisingly, the provisional figures show that the Hotel and Restaurants sub-sector is still battling the effects of the COVID-19. It received the highest contraction of 35.1% in Q4 2020.
Correspondingly, the Services sector recorded a positive annual growth rate of 1.5% in 2020. The Information & Communication sub-sector was the best performing sub-sector with a growth rate of 22.5% in the Services sector. Conversely, the Hotel & Restaurants Activities sub-sector recorded the lowest growth rate by contracting 34.8%. Besides, the Industry sector contracted 0.4% in Q4 2020 and 3.6% in 2020 as a whole.
Concerning Industry, the Electricity sub-sector recorded the highest annual GDP growth rate of 7.9% for 2020. Mining & Quarrying sub-sector was the least performing sub-sector as it contracted11.0%.
Moreover, the Services sector continued its dominance as the largest sector of the Ghanaian economy. In Q4 2020, its share was 40% of GDP at basic prices. Meanwhile, the share of Industry and Agriculture were 39% and 21% respectively. The development in Q4 2020 perfectly reflected the state of activities within the sectors in 2020.
Overall, the services sector contributed 44.6% of the economy in 2020. Whilst industry and agriculture accounted for 36.3% and 19.1% respectively.