Crude oil pushes Ghana’s economy up 34% in second quarter 2011

Oil production and its related-businesses have expanded Ghana’s economy 34.0% year-on-year in the second quarter of 2011 as compared to 31.5% during the same quarter in 2010, according to the Ghana Statistical Service (GSS) in its gross domestic product (GDP) report released today September 22, 2011.

In 2011 first quarter, the growth of the economy was 23.0% in GDP.

The mining and quarrying sector including oil production recorded the largest increase reaching 302.8% from 246.5% in the first quarter, of which oil was 67% , Dr Grace Bediako, Head of GSS said at a news conference in Accra.

The country started pumping oil December 15, 2010 and as at June 30, 2011 about 15 million barrels of oil have been produced so far and 15 oil cargoes have been exported, according to Tullow Oil.

The oil sector also boosted related services such as hotel, restaurant and other businesses, GSS officials noted.

Value of goods and services produced during the quarter increased by 3.4%, she said.

Manufacturing also increased from 82.4% to 104.9% with crops and cocoa up 78.2% during the second quarter from 30.5% (first quarter).

Ghana’s economy has been in focus since the country began commercial oil production and different predictions for growth are being made.

Seen as the fastest growing in the world, the World Bank in January this year, projected that the country’s economic growth rate will be around 13.4% in 2011. It recently revised the rate to 20%.

The International Monetary Fund (IMF) said with the start of oil production, it expects Ghana’s economic growth to exceed 13% in 2011.

The African Economic Outlook (AEO), a product of the African Development Bank, the OECD Development Centre, the United Nations Economic Commission for Africa and the United Nations Development Programme has projected a growth of 12% in 2011.

Standard Bank, mother-company of Stanbic Bank Ghana has also put a 16.3% growth rate for Ghana’s economy at the end of the year.

By Ekow Quandzie

Leave A Reply

Your email address will not be published.