The budget statement and economic policy of the government of ghana for the theme. Ghana global economic prospects examines trends for the world economy and how they affect developing countries. It was the slowest expansion since the second quarter of 2018, due to a slowdown in both the services and industrial sectors. Oec ghana gha exports, imports, and trade partners. Private sector development and governance in ghana freda asem, matthias busse, robert osei, and magdalene silberberger. Ghana s postindependence economic story has been a difficult one, but over the last 20 years, political stability and economic growth has been the longterm trend. Country fact sheet on food and agriculture policy trends pdf.
Ghana recent economic developments ghanas economic growth record over the past two decades has been among the strongest in africa at around 4. Urban electric cars have been manufactured in ghana since 2014. True contribution of agriculture to economic growth and. Ghanas postindependence economic story has been a difficult one, but over the last 20 years, political stability and economic growth has been the longterm trend.
Although relatively small in area and population, ghana is one of the leading countries of africa and is celebrated for its rich history. Figure 1 growth rate of per capita gdp in ghana, averages over 5 years. Financial support for the survey was provided by the. Critical overview of the urban informal economy in ghana. Giawbenterprisesurveysdocumentscountryhighlightsghana20. Page will also build on ghanas national climate change policy and on undpuneps green economy scoping study and assessment, which was completed in the country in 20. The economy of ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. A country s fiscal regime is very important determinant for investors who would want to invest because it defines the extent to which the host government and the prospective investor can share the risks and rewards of the project.
Ghana is the 70th largest export economy in the world and the 111th most complex economy according to the economic complexity index eci. Ghana covid19 monitoring dashboard quick overview inflation apr 2020 10. Pwc 2018 budget highlights 2 i n a bid to consolidate the ghanaian economy s path to macroeconomic stability and to boost the productive sectors of the economy, the 2018 budget statement the budget of government of ghana has the theme from stabilisation to growth. Currency the oficial currency of ghana is the ghana cedi ghs. It identifies the recurrent issues that determine the path of growth and finds that economic growth has been cyclical depending on which reforms are introduced and how the political agenda supports or discards it.
Ghanas economy continued to expand in 2019 as the first quarter gross domestic product gdp growth was estimated at 6. Ghana s economy was strengthened by a quarter century of relatively sound management, a competitive business environment, and sustained reductions in poverty levels, but in recent years has suffered the consequences of loose fiscal policy, high budget and current account deficits, and a depreciating currency. Specifically page will assist in the implementation of the ghana shared growth and development agenda 20142017 gsgda ii. Regardless of the imperative role played by crude oil in the ghanaian economy in line with the increasing consumption of the product, the country depends largely on crude oil that is imported to meet the demand for petroleum products domestically.
Macroeconomic performance and outlook ghanas economy continued to expand in 2019, with real gdp growth estimated at 7. If the private sector is too small, a significant and. This was the first time in ghanas history that double digit fiscal deficits were recorded for three consecutive years and this occurred under john. The ghana purchasing managers index pmi nosedived to an alltime low of 31. Economy soge 2014 report claims that the capacity shortfall for 2014 was 450.
Therefore, minerals and oil rents are also important determinants of ghanas long run economic growth see herrera and aykut. Ghanas gdp per capita growth rates increased steadily in the past two decades and varied around 57% between 2007 and 2010 see figure1. Analytical perspectives on stability, growth and poverty aryeetey, ernest, kanbur, ravi on. This report summarises the findings of the 2014 ghana demographic and health survey 2014 gdhs, implemented by the ghana statistical service gss, the ghana health service ghs, and the national public health reference laboratory nphrl of the ghs. Pdf the effect of fiscal policy and monetary policy on. This annual report on the economy of ghana for 2014 is a combined edition and devoted to public finance management. Hence subsequent studies and extensions of the works of mensah et al 2014. Ghanas 2018 economic outlook positive but challenges remain. Beginning with the banking sector, the regulator bank of ghana, took steps not only to address the risks in the sector but also prepare existing banks for the growth expected in the ghanaian economy.
Between 1946 1950 gold export rose from 6 million pounds to 9 million pounds. Ghana national climate change policy green economy. Ghana and with several university libraries in england. The economy will contract in 2020 as the oil sector is hit by the global economic fallout from the coronavirus. Title ghanas construction subtitle sector and youth. Ghanas economy in 2011 continued to perform well as the country made gains in the consolidation of its.
Endowed with gold and oil palms and situated between the trans saharan trade routes and the african coastline visited by successive european traders, the area known today as ghana has been involved in all phases of africas economic development during the last thousand years. Production at jubilee, ghana s first commercial offshore oilfield, began in middecember 2010. Ghana economy, politics and gdp growth summary the. Ghana was a country of immigration in the early years after its 1957 independence, attracting labor migrants largely from nigeria and other neighboring countries to mine minerals and harvest cocoa immigrants composed about 12% of ghanas population in 1960. Ghana gdp annual growth rate 20002019 data 20202022. Ghanas macroeconomic performance improved in 2017 after a difficult 2016. Hence subsequent studies and extensions of the works of mensah et al 2014 could. Local media reported in january 2014 that the electricity company of ghana ecg, the power. A key indicator for measuring the extent to which macroeconomic growth results in gains in the welfare of the. Ghana, country of western africa, situated on the coast of the gulf of guinea. Cocoa sector in ghana was the creation of local farmers and their families who cultivated a new cash crop to respond to global demand for cocoa beans. The informal sector in ghana friedrich ebert foundation.
August 2014 the views expressed in this publication are not necessarily those of fes ghana or of the organization for which the author works. The ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of gdp and employed 28% of the work force. Article pdf available january 2014 with 10,540 reads how we measure reads. At the same time, the concentration of exports in three commodities gold, cocoa, and oil makes the economy vulnerable to termsoftrade shocks. Aug 08, 2014 ghanas plea to imf a sad recognition of the perils of prosperity. Ghana gdp annual growth rate data, historical chart, and calendar of. Ghanaian authorities and imf staff estimates and projections. The effect of fiscal policy and monetary policy on ghana s economic growth. Total reports the total contribution of cocoa, timber and mining exports. Crops is the second largest activity in ghana with a share of 14. Impact of ghanas economic slowdown on habitats building. High growth momentum since 2017 has consistently placed ghana among africas 10 fastestgrowing economies. Mucavele 1 1 phd agricultural economics and natural resources, professor, director for academic reform and regional integration, universidade eduardo mondlane, and fanrpan steering committee member, mozambique node. The origin of the informal sector in ghanas economy can be traced back to the very beginnings of colonial capitalism in the then gold coast.
Mills government promised to take important steps towards fighting corruption, such as directing all his appointees to declare their assets within seven days instead of six months. Cocoa in ghanas economy most of worlds cocoa is grown in developing countries more than half in west africa essentially for export, and largely by smallholders. The number of hotels increased greatly from 992 in 2000 to 1,797 in 2010. Improvements in the macroeconomic environment were accompanied by expansion in domestic demand due to increased private consumption. But another type of natural resource is a big draw here, with vibrant local culture, raw natural beauty, and numerous wildlifefilled.
The new cedi was introduced in july 2007 to replace the old cedi after a period of severe depreciation. I made two visits to ghana in 2014 and 2016 but my major research area has, since the. Understanding ghanas growth success story and job creation. The sector itself has registered impressive growth, increasing its contribution to gross domestic product gdp and employing 320,000 people. Values are 5year averages for the years 19702006, and averages of 14 years for values that correspond to the years 2007 and after.
The economy of ghana has a diverse and rich resource base, including the manufacturing and. Speaking to tv3s alfred ocansey during the analysis of the presidents state of the nation address, he indicated that between 2014 and 2015, while i was finance minister, ghanas economy. The countrys growth rate reached its peak of 15 per. Ghanas economy, reducing poverty and fighting corruption. Production at jubilee, ghanas offshore oilfield, began in middecember 2010.
There are probably only a few african countries where such results can be replicated today. Even at such an early stage an essential feature of labour in the informal sector was its heterogeneous character that. This chapter presents patterns of economic growth and macroeconomic performance in ghana using a cross. Ghana s effective installed generation sources as at december, 20.
This reflects continued high levels of growth in the industry. In september 2017, ghanas economy expanded for the fifth successive quarter by 9. The external position has improved as the trade balance has shifted to a surplus. This gure plots the share of primary commodities in total exports. Ghana national climate change policy 20 vii preface ghana has demonstrated impressive economic development over the past decades, attaining the status of a middleincome country.
Recent generation problems returned us to a partial load sharing regime in january 2014. This entry shows where production takes place in an economy. The content comprises policies, legal frameworks, institutions, processes and mechanisms by which the public resources are managed and how it is accounted for. Ghanas economy, and particularly employment, still relies heavily on agriculture, and some 80 percent of jobs are in the informal sector. Gold and cocoa exports, and individual remittances, are major sources of foreign exchange. On average, the ghanaian economy grew annually by 5.
Ghana gdp 19602019 data 20202022 forecast historical. Agric subsectors see paragraph 44 of the 2014 budget crops other than cocoa about 61%. These have given ghana one of the highest gdp per capita in west africa. The economy will contract in 2020 as the oil sector is hit by the global economic.
Economic and social development before 1957 1874 gold mine in wassa and asante. Population as of july 20, ghanas population was estimated to be about 25. Ghana economy gdp, inflation, cpi and interest rate. Information on the economy in ghana, africa usa today. Over the same period, poverty rates decreased and other, nonmonetary, welfare indicators improved. Ghanas construction sector and youth employment 7 executive summary ghanas economy has grown rapidly in the past 20 years, and the construction sector has both contributed to and benefited from this. Pdf the ghanaian economy has been on an upward trajectory over the. Ghanas economy was the fastestgrowing in the world in 2011, but by 2014 it had deteriorated and needed a bailout from the international monetary fund. The impact of trade liberalization on poverty in ghana. Obeng abstract studies have shown that free trade is better than no trade and therefore trade liberalization will significantly improve export earnings and enhance economic growth.
Industry includes mining, manufacturing, energy production, and construction. Sowing the seeds for growth and jobs presented to parliament on thursday, 2nd march, 2017 by ken oforiatta minister for finance years on gh mobilising for ghanas future on the authority of his excellency nana addo dankwa akufoaddo. Gold, oil, and cocoa exports, and individual remittances, are major sources of foreign exchange. Agriculture includes farming, fishing, and forestry. The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. Economy ghana is classified by the world bank as a lower middle. By the early 1980s, ghana s economy was in an advanced state of collapse. The distribution gives the percentage contribution of agriculture, industry, and services to total gdp, and will total 100 percent of gdp if the data are complete. See paragraph 44 of the 2014 budget crops other than cocoa about 61% of. Structure of the ghanaian economy the structure of the ghanaian economy can be summarized as containing. Ghanas agricultural sector is characterized by low yields for both staple and cash crops.
Share of economic sectors in the gdp in ghana 2018 statista. Section 2 describes the broad patterns of economic development and structural change in ghana from 1960 to date. This statistic shows the share of economic sectors in the gross domestic product gdp in ghana from 2008 to 2018. The second hypothesis proposes that the private sector has to reach a critical size to have any influence on policy makers. Coronavirus may have negative impact on ghana, govt must. Political stability is underpinned by ghana s strong democratic credentials, and despite slow progress on job creation and industrialisation, we expect the ruling new patriotic party to win the december 2020 election. In 2018, the share of agriculture in ghana s gross domestic product was 18. The ghana economy is driven agriculture and natural resources. Ghanas top individual income and corporate tax rates are 25 percent. The total electricity made available for gross transmission in 2015 was 11,692 gwh, in 2014 was,071 gwh and 20 in 12,927 gwh in 20.
Pmi plunges to record low in april on covid19 fallout. Ghanas financial services sector has attracted a lot of attention in the last few years. The tourism sector of ghana has been doing well because of the improvement in the number of hotel facilities since 1989 as shown in figure 3. Highlights 2012 ghana is positioned for growth and diversification of products. Ghana gdp growth jumps to over twoyear high in q4 2019. The gross domestic product gdp in ghana was worth 66 billion us dollars in 2019, according to official data from the world bank and projections from trading economics. The countrys economy expanded for the fifth successive quarter in september 2017, at a rate almost double that of 2016, according to a world bank report released today. Ghanas economic growth will be hampered inordinately for a long time if conditions are not germane for the banking sector to play its proper role in. After a difficult 2016, ghanas macroeconomic performance improved in 2017, with the countrys economy expanding for the fifth successive quarter in september 2017, at a rate almost double the 3. Malawi, mozambique and zambia synthesis report by firmino g. Ghanas plea to imf a sad recognition of the perils of prosperity. Per capita gross domestic product gdp showed negative growth throughout the 1960s and fell by 3. In the year 1999, the number of hotels increased from 273 in 1989 to 767 in 1999.
Ghana economic outlook african development bank building. Ghanas december 2016 elections led to the transfer of political power to the opposition political party, the new patriotic party, which won the presidential election with 53. Official pdf, 63 pages world bank documents world bank group. The fishing subsector continued to contract, recording a gdp growth rate of 6.