Ghana records 5.4% economic growth in 2021…led by service sector

Ghana’s economy in 2021 grew by 5.4% despite the effect of COVID-19 on the country, driven by the service sector.

Last year’s growth rate is ten times the 0.4% growth recorded in 2020.

Without oil, the economy recorded a gross domestic growth (GDP) growth rate of 6.9%, government statistician Prof. Samuel K. Annim said yesterday in Accra.

The government statistician who provided the provisional GDP figures yesterday said the size of the economy provisionally stood at GH¢459.130 billion, with the corresponding GDP per capita for 2021 being GH¢14,891.37 ($2,565).

He said the provisional annual GDP for 2021 at constant 2013 prices was estimated at GH¢175,057.3 million.

“The quarterly year-on-year GDP growth rate for the fourth quarter of 2021, however, was 7.0% compared to the 4.3% recorded in the fourth quarter of 2020, and the quarter-on-year (non-oil) GDP growth rate annual for the fourth quarter was 7.6% compared to the 5.7% recorded in the fourth quarter of 2020,” said Professor Annim.

The government statistician said the 2021 growth rate was driven by the services sector, which recorded the highest growth rate of 9.4%.

He said that information and communication technologies, which registered a growth rate of 33.1%, and the agriculture sector, such as fishing, which registered a growth rate of 13, 4%, drove growth in the services sector.

Prof. Annim said the education sub-sector recorded the lowest growth rate of -3.7%.

Hotels and restaurants as well as financial and insurance activities increased by 4.3% and 2.4% respectively.

The agricultural sector recorded an annual growth rate of 8.4% in 2021.

“The fishing sub-sector registered the highest annual growth rate of 13.4%, while the forestry and logging sub-sector registered the lowest annual growth rate of 4.7%. Livestock and crops recorded growth rates of 5.5% and 8.9%,” Professor Annim said.

He said the industry fell by 0.8% in 2021 and this was influenced by the contraction in the mining and quarrying sub-sector, which recorded a growth rate of 12.1%.

Professor Annim said manufacturing, electrical and construction grew by 7.8%, 7.4% and 5.7% respectively.

He said the water and sanitation sub-sector recorded the highest annual GDP growth rate of 13.3% in 2021.