Investors asked to look at other areas in services sectors

By: Fred Yaw Sarpong- Daily Express

Domestic and international investors have been asked to invest in other areas in the services sector which are not performing well.

According to Dr. John Gatsi, an Economist and a Senior Lecturer at the University of Cape Coast School of Business, the hotels and restaurants, and information and communication sectors are performing well and for that matter it is important to pay attention to other equal opportunities in the services sector where progress has been slow. He mentioned areas such as trade, mechanization, household goods, and other services activities.

Speaking to the Daily Express on the performances of the services sector with reference to  the Hotels and Restaurants and the Information and Communication sectors, the Economist said “what’s important is that the other areas within the services sector ought to be harnessed to positively affect other sectors of the economy.”

Recently, the Ghana Statistical Service (GSS) released the second quarter of the Gross Domestic Product (GDP) for the country. The services sector recorded the highest GDP growth rate of 61.8% valued at GHc21,869.0 million. This was followed by the Industry sector with a GDP growth rate of 28.2% valued at GHc9,245.1 million. The Agriculture sector had GDP growth rate of 12.0% valued at GHc4,224.5 million.

Within the services sector, Hotels and Restaurants and Information and Communication sub-sectors recorded the highest year-on-year GDP growth rate of 11.6%.

  

Dr. Gatsi said this could mean that the operators of hotels and restaurants and Information and Communication sectors in the country are doing things right and they are open up for people to use their services.

“Ghana’s economy has been design in such a way that many conferences and seminars are held in the country and this has been one of factors,” he added.

He said many people visit the country from other part of the world and even within the sub-region to have experience in the sector. “They use hotels and restaurant facilities and at those facilities they also have access to communication services,” he added.

He mentioned that another area which is driving the services sector is how Ghanaians like to spend time in recreational and hospitality centers across the country.

However, Dr. Gatsi pointed out that there is need to use the services sector to improve or impact the agriculture sector.

“Have we design our economy in such a way that people want to come and learn? They may come into the country in the name of tourism but in fact they are economic tourists.”

“How do we design our health facility in the country so that the tourism sector, the hospitality sector can add value to the health sector? This is very important in order to engage in health tourism.”

  

“Now that the tourism and hospitality sector are performing very well, how do we ensure that there are positive impact on other sectors of the economy,” he asked.

The provisional 2016 second quarter real GDP (including oil) grew by 2.5% year-on-year compared to 3.8% recorded for 2015 in the period.

The non-Oil provisional for 2016 second quarter real GDP also grew by 6.2% year-on-year compared to 4.4% recorded last year.

The provisional 2016 second quarter GDP estimate (including oil) value at GHc38,161.9 million. The estimate for 2015 second quarter was GHc32,284 million.

Meanwhile, the provisional 2016 second quarter GDP estimate (excluding oil) value at GHc37,750.9 million. The value for the same period in 2015 was GHc30,487.3 million.