Ghana’s economy: Industry sector players lament slow growth

Stakeholders in the manufacturing space have indicated that despite the 6.8 growth rate recorded for the Industry in the first quarter of 2024, growth for the manufacturing sector is still slow.

Recent data from the Ghana Statistical Service shows that Industry sector growth was 6.8 percent compared to 3.3% recorded in Q1 2023.

The country’s gross domestic product (GDP) is estimated to have increased by 4.7 percent in the first quarter of 2024, according to the Ghana Statistical Service (GSS).

Compared to the fourth quarter (October to December 2023) last year, the economy grew by 1.2 percent.

This growth, according to the GSS, was driven by mining and quarrying, which contributed 12.9 percent, information and communication 17.9 percent, crops 4.3 percent, construction 8.2 percent, and accommodation and food service activities 9.4 percent.

Industry sector growth was 6.8 percent compared to the 3.3 percent recorded for Q1 2023.

However, players in the manufacturing sector insist the growth in the sector is still slow.

Mark Badu-Aboagye, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry, offers some perspective on why the manufacturing sector is not recording the expected growth.

He said, “It’s good that we have recorded growth in the industry sector, if you look at the subsectors that contributed to the growth, we realised that mining contributed about 12.9 percent and construction is about eight percent which is quite good, at least those sectors are doing well.”

“But my concern is the growth within the manufacturing sector. If you look at data from last year to this year, you will realise that the manufacturing sector is not going well as expected and this is a sector that we should put in all necessary efforts to ensure that they record an increase in growth regularly.”

Tsonam Akpeloo, the Accra Regional Chairman of the Association of Ghana Industries (AGI), emphasised the urgent need for the government to tackle the issue of cedi depreciation to help accelerate the growth of industries.

“If you do observe, you’ll realise that for some time most of our factories have been closing down or some actually have been relocating. There’s a news trend some of these big factories will rather close down their manufacturing plants and imports from their sister countries abroad and be selling in the market as though they were being manufactured here.”

The post Ghana’s economy: Industry sector players lament slow growth appeared first on Citinewsroom - Comprehensive News in Ghana.