Ghana’s economy expanded by 7.2% year-on-year in the third quarter of 2024, a strong performance overall.
However, beneath the headline growth, key sub-sectors like Fishing, Water and Sewerage, and Other Personal Services showed significant contractions, painting a picture of uneven progress.
The Fishing sector recorded a year-on-year decline of -21.7%, a stark reversal from the modest 4.7% growth seen in the previous quarter. Quarter-on-quarter, the sector shrank by -6.5%. Along Ghana’s coastal communities, this decline is evident in the daily struggles of fishermen.
Reduced catches, driven by overfishing and dwindling marine resources, have left many families with little to no income. Boats that once returned with full nets now come back half-empty or with nothing at all. The rising cost of fishing inputs like fuel and nets is adding to the burden, forcing some fishermen to abandon the trade entirely.
Water and Sewerage contracted by -3.0% year-on-year, with a quarterly decline of -1.0%. Across cities and towns, water supply interruptions are becoming more frequent. Households and industries alike are struggling to cope with the unreliable access to water.
In some rural areas, the situation is even more dire, as residents are left to rely on untreated water sources, exposing them to health risks. Industries that depend heavily on water, such as manufacturing, are bearing the additional cost of sourcing water from private suppliers, further straining their operations.
Other Personal Services, a sub-sector that includes activities like beauty salons, laundry services, and recreational facilities, is also contracted by -3.4% year-on-year and -0.8% quarter-on-quarter.
The impact of these contractions goes beyond individual sectors. The loss of income and jobs in fishing and personal services is reducing household spending power, which could weaken demand in other parts of the economy.
The challenges in Water and Sewerage are affecting productivity in agriculture and industry, potentially slowing overall economic growth.
The contractions highlight the need for urgent action to address the structural challenges facing these sub-sectors.
