The Services sector is expected to contract in 2024, the Institute of Statistical, Social and Economic Research has projected.
The sector, it however said, is expected to grow by 4.6% in 2023, higher than the earlier estimate of 1.7%, with a medium-term growth of 3.5%.
In its analysis of the impact of the 2024 Budget on the private sector, the research organisation said “it is not sure of why we’re less optimistic about Services sector in 2024”.
ISSER pointed out that the Services sector will constitute about 46% of the size of the economy in 2023.
This is compared with Industry’s 32.5% and Agriculture’s 21.4%.
In the first half of 2023, the Services and Agriculture sectors expanded by 6.3%, whilst Industry contracted by -2.2%.
In its recommendations for the services sector, it called for increased Private Public Partnership engagement to bolster domestic tourism, especially for abandoned sites.
On the National Electric Vehicle Policy, ISSER called for a rigorous technical engagement backed by Research and Development and in alignment with international and regional best practices to avoid the failures of similar policies in the past.
10 sub sectors expanded in quarter 2, 2023.
According to the Ghana Statistical Service, 10 out of 11 sub sectors within the Services sector expanded in the second quarter of 2023.
They were led by Information and Communication (26.4%) and Health & Social Work (11.0%).