Ghana is a low-income state in West Africa with an estimated current population of 24 million with population growing rate for of approximately 2.1 % . It has a comparatively rich and diverse natural resource base and exports minerals, chiefly gold, diamonds, manganese ore, and bauxite. Large measures of oil have late been discovered which should hike the economic system in the coming old ages, if managed good.
For the past two decennaries, Ghana has shown a positive growing and is on class to accomplish the Millennium Development Goal of halving poorness by 2015. It has been politically stable. Twice it has shown its democracy through the peaceable transportation of power between two political parties.
The exchange rate at nowadays is $ 1 = GHS 1.42
( what is the poorness figures )
Overall PERFORMANCE OF THE ECONOMY
The existent GDP estimation for 2009 is GHS 827.72 million and the nominal GDP is GHS 21,746.80 million. The alteration of existent GDP in 2009 over 2008 is GHS 794.82 million. In other words, the existent GDP grew at a rate of 4.1 % in 2009, compared to a 7.2 % growing rate in 2008. ( Analyse )
Cocoa and chocolate merchandises are the chief Cash harvests, which typically rake in about tierce of the entire export gross. Other harvests exported include timber merchandises, coconuts and other thenar merchandises and Shea nuts. Ghana besides tried to make a comparative advantage and have been successful in the cultivation and exportation of non-traditional agricultural merchandises such as Ananas comosuss, Anacardium occidentale nuts, and Piper nigrums. Their staple nutrients are Cassava, yams, plantains, maize, rice, peanuts, millet and sorghum.
Bing still extremely dependent on agribusiness, the Agricultural sector, contributed the most to the GDP of the state accounting for 34.5 % of the entire GDP. This sector besides recorded the highest growing of ( 5.8 % ) . .
Crops and farm animal subsector showed an 8.2 % growing This was as a consequence of the 41.4 per centum addition in the harvests and livestock sub-sector from 5.8 per centum in 2008 to 8.2 per centum in 2009. Cocoa and selling subsector besides grew by 6.2 % . Fishing is the subsector under the agribusiness sector which declined, demoing a aˆ?2.3 % alteration in existent GDP compared to 10.0 % in 2008.
Gold portions the top export gross topographic point with chocolate, each delivery in approximately $ 1 billion in 2006. Tourism has become one of Ghana ‘s largest foreign income earners ( ranking third in 2005 at $ 836 million ) , and the Ghanese Government has placed strong accent on farther development of the sector. The state ‘s largest beginning of foreign exchange is remittals from abroad, which totalled about $ 4 billion in 2006.
This sector contributed to 24.9 % of the entire GDP. Overall is recorded a growing rate of 1.6 % .
The excavation subsector recorded an estimated growing rate of 2.8 % with gold holding 9.8 % growing and other minerals entering negative growings. Manufacturing subsector besides saw a diminution and had a negative growing rate of -1.3 % as compared to 4.5 % in 2008. ( ANALYSE ) The energy sector saw the production and distribution of energy grow by 7.5 % . The state relies on two signifiers of electricity coevals which are Hydro and Thermal. Hydro electric coevals went up by 11.1 % while thermic electric production fell by 2.9 % . Construction activities in the public and private sectors declined to aˆ?1.7 % . This diminution in growing rate was believed to be as a consequence of 5 % declined in the entire production of cement in 2009.
The services sector recorded a growing rate of 5.9 % and a portion of 32.3 % of entire GDP.
Finance and insurance subsector had a growing rate of 8.7 % the highest in the sector
Conveyance and communicating subsector recorded 7.7 % growing, while
Wholesale, retail trade and hotels and eating houses activities recorded a 2.8 % growing, the lowest in the Services sector.
Crops and Livestock
Cocoa Production and Marketing
Forestry and Loging
Mining and Quarrying
Electricity and Water
Transport, Storage and Communication
Sweeping and Retail Trade, Restaurants and Hotels
Finance, Insurance, Real Estate and Business Services
Community, Social and Personal Servicess
Manufacturers of Private Non-profit Services
Net Indirect Taxes
Gross Domestic Product in Purchasers ‘ Value
Fig.1 Sector Distribution of GDP
From the above it will be realised that the most of import sector in Ghana is the agribusiness sector, followed closely by the services sector. With the… … … Net indirect revenue enhancements besides fell in existent footings ( aˆ?2.3 % ) , reflecting the slowing gait and weak trade-related revenue enhancement aggregations.
Fig. Inflation rates from Jan 2005 to 0ct 2010
Inflation has been by and large high but has been on a steady diminution since the beginning of this twelvemonth. This diminution has been underpinned by the strength of the Ghanaian cedi, which has remained loosely stable against the dollar. Development in the Money market has besides been a lending factor with a continual prolongation of the adulthood construction, demand by forign investors. It is expected to increase somewhat by the terminal of 2010 due to the increased demand for consumer merchandises as we approach the Christmas and New Year period. It might besides be due to lift of approximately 15 per cent in the oil monetary value. This demand will do an addition in monetary values of nutrient and measures in general thereby increasing rising prices.
rising prices is likely to drop to 8.5 per centum by the terminal of September 2011 if the current province of the macro economic conditions persist, that is, stable exchange rate conditions, moderated growing in money supply conditions, low aggregative demand conditions, stable petroleum oil monetary values exerted by low demand conditions in external sector economic systems and restricting disbursement growing and beef uping domestic gross mobilisation.
For the past 40 old ages Ghana has ever had a budget shortage. Datas on the 2009 budget, from the Bank of Ghana, indicated that Government financial operations resulted in a shortage, on a hard currency footing, of GH?2.1 billion ( 9.9 % of GDP ) compared with GH?2.6 billion ( 14.5 per cent of GDP ) for the same period in 2008. The shortage in 2008 was recorded as one of its worse shortages since independency in 1957. Note that the 2008 shortage does non include expenditure arrears running into 1000000s of Cedis. The shortage was mostly driven by a deficiency of prudence in public disbursement and misplaced precedences in investing undertakings
This lessening in shortage was due to the success of the Fiscal asceticism bundle imposed in Ghana in 2009. But authorities programs to increase disbursement could intend a important addition in the budget shortage. But on a positive note, the Budget is forecasted to travel into a excess by 2013, aided by the production of oil by the terminal of 2010, which will make a new influx of gross.
size of its international debt
exchange rate government and past public presentations of exchange rate
Ghana ‘s trade scheme after independency was import permutation industrialisation, a scheme aimed at cut downing the economic system ‘s dependance on trade. 2004-2007 witnessed a declining trade place as the trade shortage edged up from 23.96 per centum of GDP in 2005 to 26.94 per centum of GDP in 2007, a tendency mostly attributable to lifting import measure.
composing of its exports and imports and their finish or beginning
Ghana trade spouses include
Major Trade Partners include
size of the market measured by both GDP per capita and population
consequence of the recession on the economic system
rate of unemployment
any ordinance that might pull or discourage investors,
whether or non the state is a member of an economic community,
Ghana has been a WTO member since 1 January 1995