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Agric/manufacturing growth targets to fall
Accra, Nov. 15, Ghanadot/GNA - Projected agricultural and
manufacturing growth rates for the year 2007 might not be
achieved largely because of the erratic rainfall pattern in
the North and the energy crisis this year.
Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic
Planning, announcing this in Parliament during the
presentation of the 2008 Budget Statement said the overall
growth in agriculture for 2007 was projected at 4.3 per cent
as against an estimated figure of 6.1 per cent.
He said the fall could also be attributed to the relative
decline in the Fishing Sub-Sector as a result of dwindling
fisheries resources.
In 2006, the sector saw a percentage growth of 4.5 per cent
rate.
As a result the agricultural sector's share of GDP to growth
would also decline at 1.4 percent for the year under review
as against a 1.6 per cent in 2006.
At the manufacturing side, Mr Baah-Wiredu said it was
projected to grow by 7.4 per cent as against 9.5 per cent in
2006 mainly due to the energy crisis.
The Electricity and Water Sub-Sectors were the hardest hit
by the energy crisis as there was a decline from 24.2 per
cent in 2006 to minus 15 per cent in 2007.
He further said the energy crisis, as well as the
importation of cheaper goods; were the main factors that
affected the Manufacturing Sub-Sector leading to a reduction
in growth by 2.3 per cent.
The Minister said the robust activity on account of
Government's continuous focus on the agenda of providing
basic infrastructure such as roads, schools, and the
construction of various infrastructure, towards the hosting
of the Ghana CAN 2008 led to a growth of 11.0 per cent in
the Construction Sub-Sector.
He said the high growth of 30.0 per cent in the Mining and
Quarrying Sub Sector was attributed to increases in gold
production as the Newmont Ahafo Mine was brought into full
production and bauxite output, though diamond exhibited the
worst performance in the sub-sector.
He said the Services Sector, which was not so dependent on
electricity was projected to grow at 8.2 per cent exceeding
the 6.7 per cent target by 1.5 percentage points.
Apart from the Transport, Storage and Communication Sub-
Sectors, which grew below the 2006 level, the other
sub-sectors exceeded the 2006 outturn.
The wholesale and retail trade and the financial sub-sectors
exceeded their targets.
Mr Baah-Wiredu said the deepening of reforms in the
financial sector led to a robust growth in the sub-sector,
resulting in a significant growth of 15 per cent, compared
to a target of 10.0 per cent.
He said; "we are of the conviction that, but for the energy
crisis and escalating crude oil prices, the economy would
have grown higher at around 7.0 per cent."
GNA
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