GDP Growth For Third Quarter Of 2013 Released

Real Gross Domestic Product (GDP) for the third quarter of 2013 grew by 0.3% (year-on-year) compared to the 6.1% recorded in the second quarter, with the services sector recording the highest growth of 6.7%, while agriculture and industry sectors, followed with negative growth rates of 3.8% and 11.8% respectively.

According to key findings on the performance of economic of activities in the 3rd quarter of 2013, compared to the 3rd quarter of 2012, electricity production expanded by 16.3%; hotel and restaurant activities increased by 10.4%, financial and insurance activities increased by 29.6%; public administration was 30.1%; and information and communication increased by 19.3%.

According to a release issued by the Ghana Statistical Service in Accra, last week, seasonally adjusted quarter-on-quarter estimates of the real GDP grew by 0.5% in the third quarter of 2013 over the estimates for the second quarter of 2013 (3.9%), with the most notable performances being public administration (11.0%); financial and insurance activities (10.4%); electricity (9.3%); hotel and restaurant activities (7.5%); and crops and cocoa (2.2%).

The release underlines key economic developments for third quarter of 2013, seasonally adjusted, noting that in the Agricultural sector, economic activity in the Crops and cocoa sub-sector reflected a positive growth of 2.2% over the 1.5% recorded in the 2nd quarter of 2013, due to the seasonal pattern (harvesting season) while economic activities in the Mining and Quarrying sub-sector within the Industry sector recorded a growth of -14.7% over the growth of 3.7% recorded in the 2nd quarter of 2013, due to a decline in the production of Oil by 16.0% as a result of a planned operational maintenance in the Jubilee field.

In addition, the release states, the production of Gold and Diamond declined by 29.7%% and 2.9% respectively over the second quarter, with the Manufacturing sub-sector recording a negative growth of 4.7% over the second quarter’s negative growth rate of 19.8%, partly due to a lower production of food and beverages, refined petroleum products, and the manufacture of paper and paper products.

There were increases in the production of electricity by 9.3%, in hotel and restaurant activities by 7.5%, and in financial and insurance activities by 10.4 over the second quarter of 2013 (2.0%, 2.1% and -0.3% respectively).

The release puts Nominal GDP (current prices) estimate at GH¢ 24,990.96 million for the 3rd quarter of 2013 and Non-oil GDP at current prices for the 3rd quarter of 2013 at GH¢ 23,274.57million.

The release also puts sectoral contribution of Agriculture, Industry and Services in the third quarter of 2013 at 30.4%, 23.3% and 46.3%, respectively.

GDP Deflators
The GDP deflator, the release indicates, could be viewed as a measure of the level of prices in the domestic economy.

The GDP deflator measures the ratio of GDP at current prices to GDP at constant prices. They are constructed from Ghana Statistical Service (GSS) GDP series for current and constant prices, using the actual values.

Thus according to the release, the GDP deflator for the 3rd quarter was 304.3% relative to the base year, 2006 while the quarter-on-quarter change in the deflator was 2.7% and the year-on-year change in the deflator was 32.2%.

Seasonal adjustment

The releases says the quarterly value-added and GDP estimates have been seasonally adjusted and explains Seasonal adjustment as the process of estimating and removing seasonal effects from time series to reveal non-seasonal features.

This process, the release says, is to provide a clearer view of short term movements and trends and also to allow earlier identification of turning points.

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Source: GBC/ISD