The industrial sector delivered a strong performance in the second quarter (Q2) of 2024, recording an annual growth rate of 8.2 percent according to the latest Index of Industrial Production (IIP) released by Ghana Statistical Service (GSS). This impressive result reflects the overall Ghana industrial growth largely driven by robust expansion in the mining and quarrying and manufacturing sub-sectors, which posted increases of 8.2 percent and 8.3 percent, respectively.
Analysts say this marked improvement in industrial production is indicative of the economy’s resurgence, particularly within its key industrial segments, despite persistent challenges in the energy sector.
The mining and quarrying sector remains a cornerstone of the country’s industrial expansion, accounting for 53.26 percent of industrial output. It is expected that the mining sector will continue to be a major contributor to Ghana industrial growth 2024, as sustained global demand for minerals such as gold and manganese is projected to drive further growth.
The production of crude petroleum and natural gas saw more modest growth, increasing by 4.7 percent over the same period last year, despite a 4.4 percent decline quarter-on-quarter, reflecting the inherent volatility in global energy markets.
Quarter 2 Growth Rates: Insights into Ghana’s Industrial Growth 2024 by Sub-Sector
Manufacturing also played a significant role in the sector’s overall growth, expanding by 8.3 percent year-on-year. Notably, the basic metals sub-sector recorded the largest quarterly growth at 18.5 percent compared to Q1 2024, while the manufacture of transport equipment grew by 20.9 percent over the year.
However, performance within the manufacturing sector was mixed. Manufacturing food products recorded a significant quarterly decline of 12.3 percent, largely due to supply chain disruptions and input cost pressures affecting production.
In contrast to positive performances in mining and manufacturing, the electricity and gas sub-sector recorded a decline of 1.4 percent over the year. Quarter-on-quarter, the sub-sector’s production levels dropped by 4.3 percent, reflecting ongoing challenges in the supply and distribution of electricity and gas across the country. The shortfall in energy production has raised concerns about its potential to slow down industrial activity during the coming quarters.
While the energy sector’s struggles present challenges, the overall outlook for Ghana’s industrial sector remains optimistic, bolstered by strong performances in mining and manufacturing. Analysts suggest that sustained global demand for natural resources, coupled with improved domestic production capacity, could support continued growth in the second half of 2024.
