Economy records 12 per cent growth

THE national economy recorded a 12 per cent growth rate in the third quarter of 2011.



The third quarter growth rate was mainly as a result of strong growth recorded in the industry sector of the economy.

The quarterly Gross Domestic Product (GDP) - a measure of the market value of goods and services produced in the third quarter - came down to GH¢6,912.3 million from the GH¢6,923.7 that was recorded in the second quarter of 2011.

The third quarter GDP represents a 0.2 per cent marginal decline from the second quarter’s value.

The acting Government Statistician, Dr Philomena Nyarko, said this in Accra last Wednesday at a press conference to simultaneously release the 2011 third quarter Gross Domestic Product (GDP) of the economy and the December 2011 Producer Price Inflation (PPI) .

Dr Nyarko said the industry sector recorded the highest growth rate of 37.2 per cent followed by the services sector which grew by 5.8 per cent. The agriculture sector, she said, witnessed the lowest growth rate, growing by 5.2 per cent in the third quarter of last year.

Dr Kwabena Duffuor, Minister, Finance and Economic Planning

“Within the industry sector, the influence of crude oil pushed the growth of the mining and quarrying sub-sector to 263.1 per cent,” she added.

In the crops sub-sector, which includes cocoa, Dr Nyarko said growth in crops and livestock production rose by 10.2 and 3.6 per cent while that of forestry and fishing declined by 11 and 29.9 per cent respectively.

She said the transport and storage, information and communication, business and other services among others were the main contributors to the increased economic activity in the services sector.”

Strangely, however, the financial and insurance sub-sector witnessed negative growth in the period under review as against the booming growth rates the sub-sector has been recording in the previous quarters.

On the producer inflation for December 2011, Dr Nyarko said the rate declined to 15.19 per cent from the November 2011 rate of 17.94 per cent. The December producer inflation rate represents a 0.17 per cent dip from the November one.

Producer inflation measures the monthly average change in the factory gate prices received by producers for their respective goods and services produced in the country.

The mining and quarrying sector recorded the highest year-on-year producer inflation price change of 18.23 per cent followed by the manufacturing sector with a 17.23 per cent. The utilities sector recorded the lowest price change rate of 9.07 per cent.