Low utility tariffs, cost of credit can boost growth of manufacturing sector – Economists

Business News of Thursday, 12 April 2018

Source: Myjoyonline.com

2018-04-12

Economists, Prof. Peter Quartey

Economists, Prof. Peter Quartey, is calling for more conducive reforms to help improve the performance of the manufacturing sector.

He says a further cut in utility tariffs and cost of credit will ensure the growth of the manufacturing sector of the economy.

“Going forward, the government can look at the utility tariffs so that cost of doing business is not increased astronomically. The new base rate, if we apply the new formula very carefully, I think the manufacturing sector will shoot up,” he told JoyBusiness in an interview.

Figures from the Ghana Statistical Service (GSS) for the fourth quarter shows the manufacturing sub-sector recorded the least growth rate of 0.3%, compared to 0.6% in the 3rd quarter of 2017.

Gross Domestic Product (GDP)

Ghana’s Gross Domestic Product (GDP) provisional growth for 2017 hits 8.5 percent, according to figures from the Ghana Statistical Services (GSS).

This is a sharp increase in growth compared to the about 3.7 percent recorded in 2016. According to the GSS, the growth was fuelled by the significant growth of the industrial sector, which went up by 17.5 percent.

Acting Government statistician Baah Wadieh said the growth was also as a result of strong performance of the oil and gas sector.

The year-on-year annual GDP growth rate for the Industry sector recorded 16.7% for 2017 while the Mining and Quarrying sub-sector recorded the highest year-on-year annual GDP growth rate of 46.7% for 2017.

The manufacturing sub-sector also recorded the lowest growth rate of 3.7%. while the growth rate in the agriculture sector was recorded at 8.4%.

The services sector also recorded a growth rate of 4.3% for 2017.

In the Agriculture sector, the Crops sub-sector grew by 3.5 percent compared to 3.3 percent in the 3rd quarter of 2017. The Livestock sub-sector grew by 1.7 percent in the 4th quarter of 2017 compared to 1.3 percent growth recorded in the 3rd quarter.

The construction sub-sector grew by 1.1 percent in the fourth quarter of 2017, compared to 1.7 percent growth recorded in the 3rd quarter of 2017. Also, the manufacturing sub-sector recorded the least growth rate of 0.3%, compared to 0.6% in the 3rd quarter of 2017.

In the services sector, health and social works grew by 5.2 percent compared to 7.4 percent growth rate recorded in the 3rd quarter of 2017.

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