Ghana’s revised GDP growth for 2010 estimated at 5.9%

The 2010 Gross Domestic Product (GDP) estimates for Ghana have been revised to 5.9%, according to the Ghana Statistical Service.

In a publication, a copy of which has been sent to, it said in real terms, the provisional GDP estimate (at constant 1993 prices) for 2010 is GH¢876.74 million, a 5.9% increase over the revised GDP estimates for 2009 which was GH¢827.72 million.

The publication also said the nominal GDP (at current prices) for 2010 is estimated at GH¢25,602.45 million.

Explaining what GDP is, the publication said the Gross Domestic Product (GDP) is the total value of final goods and services produced in the country during a given period.

The estimates of the GDP are produced in stages, with estimates generated at each stage being dependent on source data available. The different stages generate estimates which are sequentially designated as projected, provisional, revised and final. It is only the final estimates that are not subject to further changes, it added.

Provisional estimates therefore give the expected performance of the economy at the end of the year by annualizing actual data for some months of the year, it said.

According to the publication, the industry sector recorded the highest growth of 7%, followed by the services sector at 6.1% and the agriculture sector recording 4.8%.

It indicated the performance of the sectors of the economy as follows:

Agriculture: The sector recorded the lowest growth, 1.2 percentage points below targeted growth of 6.0%. The sector relinquished its position as the largest contributor to the economy from a share of 36.5% to 35.6% of total GDP (at factor cost). The relatively low growth of the sector can be explained by the downward review of crops and livestock subsector from the targeted 7.0% to 5.0%.

Cocoa and forestry subsectors grew by 4.6% and 3.8% respectively. The projected growth for fishing has not been reviewed, and is therefore subject to change when data are available.

Industry: The overall growth of the sector is 7.0% and contributed 28.3% to GDP. Mining and quarrying subsector grew more than projected  to 10.5%, with all the minerals recording positive growth.

Manufacturing shows marginal growth after its negative growth in 2009. Provisional growth estimate is 1% for the subsector.

Electricity production and distribution the publication stated increased by 17.7%, whilst water production and distribution grew by 3.3%, yielding an overall subsector growth of 13.3 %.

The source of increase in electricity production was from a 9.2% growth in hydro generation and 38.3% increase in the output of the thermal generators. Exports of electricity for the first half of 2010 constituted 11.5% of total production.

Also, road and building construction activities are on the increase, showing a provisional growth of 7.9%.

On the services sector, it said from the provisional estimates the sector has the largest share in GDP (36.1%), displacing agriculture as the largest contributor to GDP.

Growth of the sector is 6.1%. The finance, insurance, real estate and business services subsector recorded the highest growth of 13.9%. Of the activities in the subsector, business service activities (consultancy and other professional services) recorded the highest growth (38.7%).

All the other subsectors in the services sector had reductions in growth compared to projected growth figures.

The largest drop in growth can be found in the wholesale, retail trade and hotels and restaurants subsector. The provisional growth is 3.5% compared to the projected growth of 8.0%. Transport and communication subsector has not been revised due to the delay in data response, the publication said.

By Emmanuel K. Dogbevi

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