[ 2016-09-28 ]

FPSO shutdown hurts Ghana’s economic growth
The Ghana Statistical Service (GSS) has reveled
the shutdown of the Kwame Nkrumah FPSO in the
second quarter of 2016 led to a slowdown in
Ghana’s economic growth for that period.

Gross Domestic Product (GDP) figures released by
the GSS today [Wednesday] revealed that Ghana’s
economy in the second quarter of 2016 grew by 2.5%
compared with the revised 3.8 percent it recorded
in same period in 2015.

The provisional quarter –on-quarter GDP growth
rate for the second quarter of 2016 was negative
0.6 percent which represents an estimated 8.851.3
million cedis in constant terms compared with
8.531.4 million cedis in the first quarter of
2015.

The GDP measures the value of goods and services
created over a period.

In constant terms the provisional second quarter
Non Oil GDP for 2016 was a little above 7.94
million cedis compared with some 7.48 million
cedis recorded in the second quarter of 2015.

The services sector led growth recording 6.0%,
followed by the agriculture sector with 4.1% while
Industry saw a decline recording a negative growth
of negative 5% year – on – year.

Government Statistician Dr Phelomina Nyarko
explains ‘the economy is growing but not at the
same rate as in the first quarter, when it was 4.8
percent unrevised. The growth was driven by the
services sector which saw huge increase what is
interesting is that the hotel & Restaurant and
Information & Communication lead growth with 11%
for both.”

There were some contractions and the main drivers
that saw the contraction year on year of the
second quarter growth in 2016 were the Water and
Sewerage sector which grew by negative 6.0%, and
mining and quarry which also grew by negative
29.0%.

Government Statistician Dr Phelomina Nyarko
explains “the slowdown in the second quarter was
mainly due to a halt in oil production on the
first FPSO of Ghana which I understand was caused
by a technical fault at Ghana’s main production
vessel. This was coupled by the manufacturing
sector as the growth within the mining and quarry
sector went down by 29% attributed to oil and gas
which also fell by 49%. Also industry sector,
manufacturing especially was hit due to drop in
oil prices on the world market.”

Meanwhile some sectors saw double digit positive
growth.

They are Electricity growing by 11.7%, Hotels &
Restaurants growing by 11.6% and Information &
Communication by 11.0%.

GDP estimates including oil at purchaser’s value
for the second quarter was little above 38.16
million cedis compared to 32.28 million cedis
recorded in the 2015 second quarter.

Non oil GDP also saw an increase in the second
quarter of 2016 from the 30.48 million cedis in
the second quarter 2015 to the 37.76 million
cedis.

Also quarter on quarter real GDP figures show the
country’s GDP shrunk to the 2.5 percent in the
second quarter of 2016 from the 4.8 percent
recorded in the first quarter of 2016.

Source - citibsinessnews.com

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