Industrial sector information 8.2% progress in 2Q24
- led by mining, manufacturing
- however power woes persist
A News Desk Report
The industrial sector delivered a powerful efficiency within the second quarter (Q2) of 2024 , recording a year-on-year (YoY) progress of 8.2 p.c in keeping with the newest Index of Industrial Production (IIP) launched by Ghana Statistical Service (GSS).
The progress was largely pushed by strong enlargement within the mining and quarrying and manufacturing sub-sectors, which posted will increase of 8.2 p.c and eight.3 p.c respectively.
This marked enchancment in industrial manufacturing, analysts say, is reflective of the economic system’s resurgence, particularly inside its key industrial segments regardless of persistent challenges within the power sector.
Mining, quarrying lead progress
The mining and quarrying sector stays a cornerstone of the nation’s industrial enlargement, accounting for 53.26 p.c of business output.
On a YoY foundation, the sub-sector grew by 8.2 p.c. It had an index worth of 88.9 in Q2 of 2023. This rose to 97.1 in Q2 of 2024.
The enhance was pushed primarily by the mining of steel ores – which surged by 12.1 p.c YoY – and the opposite mining and quarrying section, which noticed a considerable 24.8 p.c progress in manufacturing.
It is anticipated that the mining sector will proceed being a significant contributor to the economic economic system, as sustained world demand for minerals corresponding to gold and manganese are projected to stay robust and drive additional progress.
The manufacturing of crude petroleum and pure fuel noticed extra modest progress, growing by 4.7 p.c over the identical interval final 12 months regardless of a 4.4 p.c decline quarter-on-quarter, reflecting the inherent volatility in world power markets.
Manufacturing rebounds
Manufacturing additionally performed a major function within the sector’s total progress, increasing by 8.3 p.c YoY. Notably, the essential metals sub-sector recorded the biggest quarterly progress at 18.5 p.c in comparison with Q1 2024, whereas the manufacture of transport tools grew by 20.9 p.c over the 12 months.
However, efficiency inside the manufacturing sector was combined. Manufacturing meals merchandise recorded a major quarterly decline of 12.3 p.c, largely because of provide chain disruptions and enter value pressures which have affected manufacturing.
Energy weakens
In distinction to optimistic performances in mining and manufacturing, the electrical energy and fuel sub-sector recorded a decline of 1.4 p.c over the 12 months.
Quarter-on-quarter, the sub-sector’s manufacturing ranges dropped by 4.3 p.c – reflecting ongoing challenges within the provide and distribution of electrical energy and fuel throughout the nation. The shortfall in power manufacturing has raised issues about its potential to decelerate industrial exercise throughout the coming quarters.
Water-supply, waste administration see modest progress
The water-supply, sewage, and waste administration sub-sector posted modest progress of 1.2 p.c on an annual foundation.
Quarter-on-quarter, the sector’s output elevated by 2.8 p.c, indicating marginal enhancements in manufacturing volumes – though waste assortment and disposal actions skilled a 4.8 p.c quarterly decline.
Outlook for industrial progress
While the power sector’s struggles current challenges, the general outlook for Ghana’s industrial sector stays optimistic; bolstered by the robust performances in mining and manufacturing.
Analysts recommend that sustained world demand for pure sources, coupled with improved home manufacturing capability, might help continued progress in second-half 2024.
