Ghana’s economy increases in value to GHS 841 billion in 2023
Ghana’s economy expanded in value to GH¢841.63 billion in 2023 from the GH¢614.33 billion recorded in the previous year – 2022.
Despite global economic headwinds, Ghana’s economy demonstrated resilience growing by 2.9% in 2023 and surpassing the Finance Ministry’s conservative GDP growth rate projection of 1.5%.
The services sector emerged as the dominant force, contributing a substantial GH¢357.34 billion or 45.6% to the GDP. Notably, the industry sector, which encompasses manufacturing, mining, and quarrying, among others, rebounded from a contraction in the initial three quarters to register a 1.6% expansion in Q4 2023, culminating in a contribution of GH¢247.941 billion or 31.7% to the GDP.
Agriculture, the backbone of Ghana’s economy, was valued at GH¢177.606 billion representing 22.7% of GDP. Delving deeper into the economic fabric, the agricultural sub-sector saw crops commanding a lion’s share of 19.4% of the GDP.
The trade and repair of vehicles and household goods closely trailed at 18.3%, underscoring the vibrancy of domestic commerce. Mining and quarrying, at 12.9%, and manufacturing, at 12.1%, further diversified the economic landscape. Transport and storage rounded off the top five sub-sectors, accounting for 6.0% of the GDP.
While the Gross National Income (GNI) per capita witnessed a surge in local currency terms more than doubling from GHS 9,813 in 2018 to GHS 25,349 in 2023, the story was nuanced in US dollar terms.
Despite fluctuations, the income per head alternated between a peak of $2,453 and a trough of $2,126 over the last six years, indicating stability but limited growth in dollar-denominated terms.
Ghana’s economic trajectory in 2023 showcases resilience and adaptability amidst a challenging global economic environment. The robust performance across sectors, particularly the rebound in the industry sector in Q4, signals positive momentum. However, the stable yet stagnant growth in US dollar income per capita warrants attention, reflecting potential currency dynamics and global purchasing power challenges.
As Ghana navigates the economic landscape in 2024, policymakers and stakeholders would be keenly watching to harness the growth drivers, address sectoral imbalances, and potentially strategize on bolstering dollar-denominated income growth to fortify the nation’s economic position on the global stage.
