Ghana’s GDP expands 6.9% in Q2 2024—the most in the previous five years

The strongest rate of growth in five years occurred in Ghana’s economy during the second quarter of 2024, with the country’s statistics agency reporting on Wednesday that the country’s GDP expanded by 6.9% year over year.

For the producer of cocoa, oil, and gold, who has been battling the greatest economic crisis in a generation as a result of spiraling public debt, the robust rise signifies a noteworthy comeback.

According to government statistician Samuel Kobina Annim, “the 6.9% growth rate is highest since the second quarter of 2019 and it was driven largely by strong expansion in the extractive sector, just as we saw in the second quarter of 2019.”

Mining and quarrying contributed to the 9.3% growth in Ghana’s overall industry sector, while the gold sector climbed by 23.6% during the quarter for the third time in a row. Agriculture expanded 5.4%, but the services sector grew 5.8%, according to Annim.

However, the second-largest producer of cocoa in the world had a 26.2% quarterly contraction in its sector for the fourth consecutive quarter, underscoring the effects of a consistent drop in crop output brought on by disease and unfavorable weather.

The West African state is benefiting further from the economic recovery as it restructures its debt. After striking a preliminary restructuring agreement with two bondholder groups, it has extended an invitation to holders of its about $13 billion worth of international bonds to exchange their holdings for new instruments.

Bondholders can accept the offer until September 30. However, there will be a 1% consent fee for those who accept it before an early deadline of September 20.