BUDGET: Ghana's economy remains resilient ...

despite hikes in crude oil prices
Accra, Nov. 16, GNA- Ghana's economy has remained resilient in the wake of increased world crude oil prices and looming energy crises after the second half of 2006.

Statistics made available by Mr Kwadwo Baah- Wiredu, Minister of Finance and Economic Planning on Thursday in the 2006/2007 Budget Statement, indicates that that provisional projection for real Gross Domestic Product (GDP growth rate based on actual data through September, 2006 is 6.2 per cent.

This he said was slightly above the target of 6.0 per cent.

"This is mainly driven by the significant growth experienced in industry and services sectors. The projected growth rate of 6.2 per cent in 2006 is the sixth consecutive year that the nation has experienced increasing and sustained economic growth," he said.

Touching on agriculture, Mr Baah-Wiredu said growth in the sector, the mainstay of the economy, was projected at 5.7 per cent indicating 0.9 percentage shortfall against the target of 6.6 per cent.

He said the fishing sub-sector had, however, started showing signs of recovery, recording an estimated 3.6 per cent growth in 2006 from the negative 1.2 per cent growth in 2005.

"As a result of the lower than targeted agriculture growth, its share as a percentage of GDP declined from 36.0 per cent in 2005 to 35.8 per cent in 2006, while it contributed 2.1 percentage points to the GDP growth of 6.2 per cent," he said.

Mr Baah-Wiredu said provisional information on industrial growth was projected at 7.3 per cent, with Electricity and Water as the major contributory factors.

He said the supply of electricity was generally demand-driven and with a very high demand in 2006 from the mining and manufacturing sub-sectors, the generation of electricity had risen substantially.

Mr Baah-Wiredu said significant Government investment in the Electricity and Water Sub-Sectors was expected to increase the overall industrial growth.

In the Mining and Quarrying Sub-Sector, gold is projected to register a significant growth of about 9.0 per cent, with the other components of minerals generally projected to perform below expectation.

The overall effect is an estimated low growth for the Sub-Sector from 6.3 per cent in 2005 to 3.0 per cent in 2006.

The Manufacturing Sub-Sector is projected to grow at a lower rate of 4.2 per cent in 2006, compared to the 5.0 per cent recorded in 2005.

Construction, however, is projected to grow by 8.2 per cent, exceeding the target for the year.

This Mr Baah-Wiredu said was attributable to the increased road construction and other infrastructural development throughout the country. In addition, a total of 1,349,644 tonnes of cement was produced during the first eight months of 2006 against 1,276,571 tonnes produced during the corresponding period of 2005, an indication of robustness of construction activities. 16 Nov. 06