Economy expands by 34.0%

The country’s economy grew by an annual 34.0 percent in the second quarter of this year compared to the same period a year ago, the latest adjusted real Gross Domestic Product (GDP) figures show.

The growth rate, which is the highest since 2007, is due largely to exports of oil, and significant improvements in mining and quarrying recording 302.8 percent.
The government has forecast oil revenues of one billion dollars this year after commercial oil production began last December.

This, it expects, will help boost economic growth to around 13 percent this year, from 7.7 percent in 2010.

Oil output is nearing a peak of 120,000 barrels a day, with millions already exported to refineries in Europe.

Addressing a news conference in Accra, Government Statistician, Dr. Grace Bediako said: “The mining and quarrying growth was led by a strong growth reflected in the production of gold, oil and quarrying.

“Manufacturing growth was led by a strong growth in the manufacturing of wood, petroleum, chemicals, motor vehicles and furniture; and the growth in crops was led by increases in the production of cocoa.”

She added that quarter-on-quarter seasonally adjusted, the financial and insurance activities sub-sector of the services sector recorded the highest growth of 47.1 percent within the industry.

Crops and cocoa inclined 58.2 percent from 27.5 in the first quarter to lead the agricultural sector with forestry and logging, and fishing behind.

From the industry sector, mining and quarrying was 18.7 percent, ahead of manufacturing and utilities.
“No doubt the mining and quarrying sector, which includes oil, contributed heavily to the increase; oil is having a heavy impact on the country's growth.”

The Government Statistician said, judging by historical trends, growth will likely be stronger in the ensuing quarters of the year due to the strong performance of oil production together with revenue from gold and cocoa exports.

Data on the external sector also reveal improving indicators, according to the Bank of Ghana. Total merchandise exports increased by US$2.9billion to US$7.5billion in 2011, representing a growth of 62.3 percent over the same period of 2010.

The strong export growth was driven by gold, cocoa beans and crude oil. The total export of crude oil from January to July was 12.6 million barrels valued at US$1.4billion, while exports of gold and cocoa beans were US$2.8billion and US$1.5billion respectively.

Last year, real GDP growth was 7.7 percent, a strong rebound from four percent growth in 2009. The services sector was the main driver, growing by 9.8 percent.