The economy gained momentum last year, expanding by 7.8% year-on-year (y-o-y) in the first six months, according to Ghana’s 2018 budget statement, tabled to Parliament in November.
While full-year results for 2017 have not yet been announced, the performance in the first half of the year put the economy firmly on track to hit the government’s year-end growth projection of 7.9%, up from original forecasts of 6.3% and well above 2016’s expansion of 3.7%.
Industry was the best performing sector, growing by an estimated 17.7% on the back of higher-than-expected upstream oil production. The mining and quarrying segment, of which hydrocarbons is a significant contributor, was forecast to record year-end expansion of 52.3%, while power generation was set to rise by 6.7% and construction by 3.7%.
Elsewhere, the services sector, which accounts for 55.9% of economic activity, was expected to post growth of 4.7% in 2017, while agriculture was on track to expand by 4.3%.
Hydrocarbons and services to drive future growth
The upward trend is expected to continue into the coming years. The government predicts GDP will increase by 6.8% in 2018, followed by growth of 7.3% in 2019 and 5.6% in 2020.
While hydrocarbons activity is set to spur short-term expansion, the further development of segments such as ICT and education will drive growth in the medium term, according to government estimates.
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