Economy expands 5.1% in Aug on strong services, farm output

 By Joshua AMLANU

The economy expanded 5.1 percent in August on the back of strong activity in the services and agriculture sectors while industry continued to struggle, according to the latest monthly indicator of economic growth released by the Ghana Statistical Service.

Government Statistician Dr. Alhassan Iddrisu said the August outcome points to continued economic momentum, with the overall MIEG index rising to 108 from 102.7 a year earlier.

“The upward trend we have seen since 2023 is continuing,” he said during the briefing in Accra. The monthly indicator is designed to give early signals on economic performance ahead of the quarterly GDP figures.

Agriculture expanded 7.4 percent in August, a significant improvement from the 2.3 percent recorded a year earlier. Dr. Iddrisu attributed the growth mainly to consistent gains in crop production, which has strengthened steadily since 2023. The sector accounted for more than a quarter of the month’s total economic expansion.

Industry contracted by 1.8 percent during the month, extending a pattern of weakness driven by lower petroleum output and slower manufacturing. Although the decline was smaller than July’s 3.1 percent drop, it contrasted sharply with the 9.1 percent expansion recorded in August 2024. Dr. Iddrisu noted that the slowdown of petroleum production and more recent softening in manufacturing remain the main drags on industrial activity.

Services remained the largest and strongest-performing sector, recording 9.6 percent growth compared with 2.6 percent last year. ICT, education and trade continued to anchor the gains. The services sector contributed the majority of  overall monthly expansion, reinforcing its position as primary driver of the economy. “Services continue to be the largest contributor in overall economic activity,” Dr. Iddrisu said.

He identified three key factors supporting the August performance: steady growth in agriculture, continued expansion in ICT and education within services, and what he described as a “moderate improvement” in industrial activity compared with July… despite the sector still being in contraction.

The statistical service also revised its estimate for July, cutting headline growth to 3.7 percent from 4.5 percent due to updated data across several sectors. Agriculture remained unchanged at 8 percent, but industry shifted from a marginal 0.1 percent increase to a 3.1 percent contraction after new information from mining, quarrying, and manufacturing. Services saw a small upward revision from 6.4 percent to 6.9 percent. Dr. Iddrisu said these updates reflect the standard practice of refining provisional estimates as more comprehensive administrative data becomes available.

The revisions, he explained, were informed by new reports from mining and quarrying, manufacturing, trade, accommodation and food services and transport service providers. He stressed that the approach aligns with the process used for quarterly and annual national accounts.

Dr. Iddrisu urged policymakers to maintain support for agriculture and technology-driven services to sustain momentum. He added that the data point to rising demand in services and agriculture-linked value chains, offering opportunities for businesses. Households, he said, should pay attention to sector trends in guiding job, skills and consumption decisions.

“We will continue to provide timely, transparent and data-driven updates so that every stakeholder can make informed decisions,” he said.

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