The total value of goods and services produced in the country ending June this year witnessed its biggest growth in a long while.
Figures released by the Ghana Statistical Service put the year -on- year growth at 9 percent.
This is the biggest increase in GDP growth based on figures published by the Statistical Service over the last two years.
The Statistical Service attributes the expansion to some significant growth in the mining and quarrying sector, oil and gas production, which recorded 188 percent growth.
Industry recorded a growth rate of 19.3 percent, Services – 5.6 percent, while Agric had 3.4 percent.
The GDP growth rate measures how fast the economy is growing. It does this by comparing one quarter of the country’s gross domestic product to the previous quarter. GDP measures the economic output of a nation.
The GDP growth rate is driven by the four components of GDP. The main driver of GDP growth is personal consumption. This includes the critical sector of retail sales. The second component is business investment, including construction and inventory levels.
Government spending is the third driver of growth. Its largest categories are Social Security benefits, defense spending and Medicare benefits.
The government often increases spending to jumpstart the economy during a recession. Fourth is net trade. Exports add to GDP while imports subtract from it.
myjoyonline