Ghana’s Economic Growth Overtakes Nigeria’s in 2021 by 6.6%, Nigeria 4.03 Per Cent

Ghana’s Economic Growth Overtakes Nigeria’s in 2021 by 6.6%, Nigeria 4.03 Per Cent

  • The Ghanaian economy is rebounding faster than expected after being ravaged by the COVID-19 pandemic in 2020
  • The economy overtook that of its rich neighbour and galloped to a whopping 6.6 per cent in contrast to Nigeria's 4.03 per cent in 3 months
  • Education, manufacturing, agriculture, telecoms, transportation and others were the major drivers of growth for Ghana

Ghana’s economy is defying the odds and galloping over that of its rich neighbour, Nigeria which is beset by rising debts and insecurity.

The West African country recorded a growth of 6.6 per cent in three months of 2021 from a 3.9 per cent increase in the preceding quarter.

Higher than Nigeria

This is higher than the 4.03 per cent growth seen by Nigeria, the largest economy in Africa.

Nigeria’s economy grew by 4.03 per cent year-on-year in the third quarter of 2021, a slower growth compared to the 5.01 per cent recorded in the previous quarter.

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Nana Akufo Ado of Ghana and Nigeria's President, Muhammadu Buhari
Nana Akufo Ado of Ghana and Nigeria's President, Muhammadu Buhari
Source: Getty Images

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Ghana saw its fastest GDP growth rate since the start of the COVID-19 pandemic. The growth has erased the economic woes recorded in the year before.

According to the government statistician, Samuel Kobina Annim at a news conference, the 6.6 per cent growth rate recorded for the third quarter of 2021 is the closest the country got to the pre-2020 period when COVID just set in.

Kobina stated:

“This growth rate that we recorded is edging us closer to the GDP growth rate that we recorded during the pre-COVID-19 era, keeping in mind that we did record a 9 per cent growth rate in the first quarter of 2019.”

Drivers of growth

According to the data from the Ghana Statistical Service (GSS), Agriculture, education, trade, repair of vehicles, household goods, manufacturing and information & communication sub-sectors of the economy spearheaded the GDP growth for the third quarter of 2021 for the West African country.

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Also, the education sector saw a growth of 24.2 per cent in the year in review, Health & Social works grew by 20.5 per cent, Information and Communication by 17 per cent, Professional administrative and Support by 16.7 per cent, and Hotel and Restaurants by 16.4 per cent.

Contrasting the growth recorded by Nigeria in the same period, the main arrowhead of the growth were trade, Telecoms. Others include Financial and Insurance; Manufacturing; Agriculture; and Transportation and Storage, accounting for positive GDP growth.

Where Ghana stands in Africa

Ghana is the 8th largest economy in Africa, according to data from the World Bank It is estimated at N28.53 trillion in 2020. The GDP of a country is the total monetary or market value of goods and services produced within an economy in a particular period.

Nigeria's economic woes has reported that the economic problems in Nigeria have always been a topic of discussion in schools, social platforms, and even the national assembly. But then, everyone knows what the main problem is.

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It is because the citizens and leaders have always failed to make things right in both rules of governance and law. If our country continues this way, then economic growth will continue to be a dream.

The problem is standing in the first row, among other basic economic problems facing Nigeria. The government will not be able to manage its economic, political, and social affairs without fostering interaction between it and the private sector and state civil society.


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