Despite signs of a broader economic recovery, Ghana’s real sector performance is flashing warning signals. Data from the Bank of Ghana and Ghana Statistical Service for 2024 reveals a troubling slowdown in two of the country’s key growth engines, agriculture and industry, even as the services sector continues to drive GDP expansion.
According to quarterly figures, the agriculture sector recorded consistent year-on-year declines throughout the year. Growth, which stood at 5.7% in the final quarter of 2023, fell sharply to 2.5% in the third quarter of 2024, with only a modest recovery to 2.9% in Q4.
The decline reflects a mix of rising input costs, erratic rainfall patterns, and ongoing challenges in irrigation and mechanization. If the trend persists, it could threaten rural livelihoods and put pressure on national food security.
The picture in industry was no less concerning. After a strong start, 11.7% growth in Q2 and 10.7% in Q3, the sector saw a dramatic plunge to just 0.2% by the end of the year. The sharp reversal suggests that gains in the industrial sector may have been driven more by short-term capital projects and extractive activities than by structural transformation.
Compounding the concern are global commodity price fluctuations and domestic energy supply constraints, both of which continue to cast a shadow over Ghana’s industrial outlook.
In contrast, the services sector remained resilient and stable. Growth figures held steady throughout the year, 6.2% in Q2, 6.5% in Q3, and 6.3% in Q4, with sectors like finance, ICT, and retail playing key roles. Services continue to anchor Ghana’s GDP, providing a buffer against volatility in agriculture and industry.
However, the growing gap between high-performing services and struggling real sectors raises concerns about a two-speed economy, where urban-led growth outpaces development in traditional sectors tied to rural livelihoods and job creation.
Overall GDP growth fell from 7.5% in Q2 to 3.6% in Q4, underscoring the fragility of the recovery. For the full year 2024, overall GDP grew by 5.7%, up from 3.1% in 2023, while non-oil GDP rose to 6.0%, compared to 3.6% the previous year.
