Ghana’s Statistical Service (GSS) has reported a 3.2 percent contraction of the country’s economy for the second quarter of this year for the first time since 1983.
The data provided also showed that Ghana’s Gross Domestic Product (GDP) in the 2nd quarter of this year increased from GHc85.7 billion compared to GHc84.3 billion recorded for the same period in 2019.
According to government statistician, Professor Samuel Kobina Annim the contraction was as a result of the partial lockdown and the restrictions on certain activities brought on by the coronavirus pandemic.
“For the first time, in 37 years, Ghana’s economy has seen a contraction of 3.2 percent. Specifically, from a current prices point of view, the GDP estimates for the second quarter of 2020 was GHc85,758.1 million relative to GHc84,312.0 million for the second quarter of 2019.
“This increase in GDP is strictly from a current prices point of view and the influence of price changes over time is the main reason we are seeing the increase of about GHc1, 446 million,” he said.
When viewed on a quarterly basis, the growth rate of GDP in the second quarter of the year was -0.8 percent.
This indicates that the value of goods and services produced in the second quarter of 2020 contracted by 0.8 percent over the value of goods and services produced in the first quarter of 2020.
The highest expansion was recorded in the information and communication sub-sector at 74.2 percent, while the hotels and restaurants sub-sector recorded the highest contraction of 79.4 percent.
The agric sector on the other hand saw a growth rate of 2.5 percent whilst the service sector contracted by 2.6 percent and the industry sector by 5.7 percent.
Meanwhile, the livestock sub-sector recorded the highest year-on-year growth rate of 5.7 percent in the agric sector while the forestry and logging sub-sector recorded the lowest GDP, with a contraction of 8.4 percent.
The oil sector had also recorded a 3.2 percent contraction in the second quarter whereas the non-oil sector contracted by 3.4 percent.
Source: BusinessZone Online