Top 10 Insights from Alfred Appiah’s Decade-Long Analysis of Ghana’s Economic Growth

Top 10 Insights from Alfred Appiah’s Decade-Long Analysis of Ghana’s Economic Growth—–2023 marked the slowest economic growth in three years, with Ghana’s economy expanding by only 2.9%. This is the weakest performance since the pandemic-stricken year of 2020 and one of the lowest in the past eight years.

1. Industry’s Struggles = Slower National Growth: Economic boom years like 2017-2019 were powered by strong industrial growth. In contrast, recent declines in mining and quarrying have dragged the economy.
2. Industry’s Share of GDP Has Dropped: In 2013, industry made up 36% of GDP. By 2023, that number had shrunk to 32%, despite industrialization efforts.
3. Services Are Now the Economic Powerhouse: The services sector has grown from 43% of GDP in 2013 to 46% in 2023, showing a clear shift toward a service-based economy.
4. Agriculture Is Quietly Rising: Though not as flashy, agriculture’s share of GDP increased from 21% in 2013 to 23% in 2023, showing quiet but steady growth.
5. Ghanaians Are ‘Richer’ in Cedis, Not in Dollars: GDP per capita in cedi terms has grown fivefold since 2013, but in dollar terms, it has barely changed, thanks to currency depreciation.
6. Q4 2023 Was the Best Quarter All Year
   Growth in the last quarter of 2023 hit 3.8%, the highest of the year, but unchanged from Q4 2022, which was still considered a crisis year.
7. Post-Pandemic Recovery Is Sector-Specific: Quarterly GDP is 12.9% above pre-pandemic levels overall, but industry remains 3.6% below its pre-COVID size.
8. Construction Sector Is in Deep Decline: Construction shrank by 9.9% in 2023, following a 6.8% decline in 2022. Its share of GDP has fallen from 8.9% in 2015 to 5.3% now.
9. The Economy Needs More Than Growth Stats: While headline growth exists, the real story lies in sectoral struggles, currency erosion, and the need for targeted recovery, especially in industry and construction.

So what?

Appiah’s article, published in 2024, reminds us that GDP numbers don’t always tell the full story. For Ghana to achieve sustainable growth, more attention must go to fixing sector-specific issues, especially in construction and industry, while strengthening the real value of its economic progress.

Source: The High Street Business