Ghana’s Economy And It’s Currency Depreciation Against The Dollar And State of Foreign debt

Ghana Map Financial Crisis Economic Collapse Market Crash Global Meltdown Vector Illustration.

The economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive sevice. Ghana’s economy has the following GDP.

GDP of Ghana by sector:

  • Agriculture: 18.3%
  • Industry: 24.%
  • Services: 57.2%; (2017 est.)

GDP growth:

  • 6.3% (2018)
  • 6.1% (2019)
  • 1.5% (2020e)
  • 5.9% (2021e)

GDP per capita rank:

  • 163rd (nominal, 2021)
  • 165th (PPP, 2021)

GDP rank:

  • 75th (nominal, 2021)
  • 72nd (PPP, 2021)

Economy Of Ghana

Statistics

PopulationIncrease 32,028,461 (2021)[3]

GDP

  • Increase $74.26 billion (nominal, 2021 est.)[⁴] 
  • $186.682 billion (PPP, 2021 est.)[⁵]

GDP Rank :

  • 75th (nominal, 2021)72nd (PPP, 2021)

GDP growth6.3% (2018) 6.1% (2019e)1.5% (2020e) 5.9% (2021e)[5]

GDP per capitaIncrease $2,374 (nominal, 2021 est.)[4]Increase $5,968 (PPP, 2021 est.)[4]

GDP per capita rank163rd (nominal, 2021)165th (PPP, 2021)

GDP by sector agriculture: 18.3%industry: 24.%services: 57.2%(2017 est.)[6]

Inflation (CPI)9.7% (2020 est.)[5]

Population below poverty line23.4% in poverty (2016)[7]30.5% on less than $3.20/day (2016)[8]

Gini coefficient

  • 43.5 medium (2016)[⁹]

Human Development IndexIncrease

  •  0.611 medium (2019)[¹⁰] (138th)
  • 0.440 low IHDI (2019)[¹¹]

Labour forceIncrease 

  • 12,844,477 (2019)[¹²]
  • 54.6% employment rate (2017)[¹³]

Labour force by occupation:

  • Agriculture: 44.7%
  • Industry: 14.4%
  • Services: 40.9%(2013 est.)[⁶]

Unemployment Rate:

  • 5.7% (2016)[¹⁴]1
  • 1.9% (2015 est.)[⁶]

Main industries mining, lumbering, light manufacturing, aluminum smelting, food processing, cement, small commercial ship building, petroleum.

Ease-of-doing-business rank;

  • Decrease 118th (medium, 2020)[¹⁵]

EXTERNAL STATISTICS

Exports

  • $13.84 billion (2017est)[6]

Exports Goods:

  • OIL
  • TIMBER
  • COCOA
  • ALUMINIUM
  • DIAMONDS

Main Exports Partners ;

  • INDIA
  • UNITED ARAB EMIRATES
  • CHINA
  • VIETNAM
  • BURKINA FASO

IMPORTS; Decrease$12.65 Billion (2017est)[6]

Import Goods:

  • Capital equipments
  • Refined Petroluem
  • Foodstuff

MAIN IMPORT PATNERS

  • CHINA
  • UNITED STATES
  • BELGIUM
  • INDIA

SOURCE ; https://www.cia.gov/the-world-factbook/ ALL VALUES ARE STATED IN US DOLLARS OR OTHERWISE STATED.

statistics showing the inflation rate of Ghana’s economy

ECONOMIC DEVELOPMENT OF THE GHANA IN THE LAST YEARS

Ghana”s rapid growth (7% in 2017-2019) was halted by the covid 19 pandemic, the lockdown and a sharp decline in commodity exports with an overall GDP as low 0.4% . The economic slowdown had a considerable impact on household. poverty outcome rate is estimated to have slightly increased from 25% in 2020. Ghana’s economy has effectively dropped from the covid 19 induced slowdown. growth is estimated to have reached 4.1% in 2021, is expected to be broad based in 2022 and projected to reach 5.5 % in 2022.

The overall fiscal deficit doubled to 15.2% in 2020 and public debt increased to 8.1% in 2020, placing Ghana at a significant risk of debt distress. while some consolidation happened in 2021 with the deficit decline to 11.3% more significant effort will be required to alter the debt dynamics meaningfully. provisional fiscal data for fist quarter of 2021 suggest that the authorities cut spending to make up for revenue shortfalls. the overall fiscal deficit was 5.1% of GDP.

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Inflation averaged 7.8% in the first quarter of 2021 and ended at 10% as full average. it was due to the exchange rate, food and non food price hike has continued in the first quarter of 2022. as of end of february 2022, the inflation in the Ghana economy rose to 15.7% the highest level sincedecember 2016. Fueled by the domestic recovery, imports expanded faster than exports in early 2021 while external demand for commodities remained subdued.

GHANA’S ECONOMIC OUTLOOK

Ghana’s economic outlook is projected to remain realatively strong over the medium term, supported by higher prices for key exports and strong domestic demand. growth is projected to reach 5.5% in 2022 and average 5.3% over 2022. economic growth expected to be broad based led by agriculture and services and relatively stronger industry sector.

Targets for other revenue measures may be too optimistic. A more conservative projection suggests that the fiscal deficit could be closer to 7.5% in the medium term (2022-2024) compared to the government target of 5.8%.

GHANA’S ECONOMICAL RISK

Ghana’s economy continues to suffer the impacts of the pandemic as growth is yet to bounce back to pre pandemic levels, and this could be compounded by the current war ongoing war in ukraine. the developments are expected to raise global prices for several key commodities. icluding food, fuels fertilizers and metals used in industry. adding prior inflation in Ghana.

GHANA’S (CEDI) CURRENCY DEPRECIATION AGAINST THE US DOLLAR ($)

The Ghanaian cedi has depreciated by a whopping 47.10% against the Us dollar since the first quarter of 2022. since january, the cedi has rapidly depreciated against the Us dollar, making it the world’s most worst performing currency after the SRI- LANKAN rupee.

Also Ghana’s inflation rate moved faster in july 2022. the value of cedi fell at the foreign stock exchange, raising the cost of imported products suck as cooking oil and fossil fuels.

  • Ghana’s central bank unleashed the most aggresive tightening of monetary policy, which led to increase in the interest rate to 19% from 17% to stop the fall of the Ghanian cedi and rising inflation.
  • the headline inflation rate in Ghana increased to 31.7% in july 2022 from the previous month’s 29.8%. Ghanian economy have increasingly declined by the rate of inflation.

External Debt in Ghana Decreased from 28100 USD million in the second quarter of 2022 from 28400 USD million in the first quarter of 2022.

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