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Ghana Ghana

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Ghana

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EconomicPoliticalStructural

Ghana – Quick View
ECR score44.71 (Mar 2011)
ECR rank86 (Mar 2011)
Economic
GDP 2010USD 17.46 billion
GNI per capita PPP 2010USD 1,385
FDI inflow 2010 (Till Q2)USD 1,415.07 million
Inflation Q2 20109.5%
Central bank assets 2010 (Till August)USD 5,169.02 million
Unemployment rate 201021%
Government deficit 2010 (Till Q2)USD 775.36 million
Tax revenue (Till Q2)USD 1,982.62 million
Political
Government typePresidential Democratic
Recent political crisisNA
Economic freedom score 201195th
Freedom of information score 201026th
Corruption perception index 201062nd
Structural
Crude birth rate 200932%
Population balance 2009Under 14 - 38%
Population balance 2009Over 64 - 4%
Life expectancy years 2008Male 56
Life expectancy years 2008Female 57
Mortality rate 200880 per '000
Literacy rate 201067.3%
Internet access 20105.3%

[Top] Economic Overview

Ghana has a diverse economy, with the agricultural and industry sectors taking prominence. The agricultural sector contributes about one third of the country’s GDP. The country’s major exports include minerals such as bauxite, manganese ore, diamonds and gold.

Gross domestic product (GDP)

The country’s GDP at current prices in the first two quarters of 2010 amounted to GHS 25.93 billion. Ghana GDP at current prices

(Source: bog)

GDP growth

The country’s GDP growth rate in 2007 was 6.5%, and increased to 8.4% in 2008.
Ghana GDP growth rate

(Source: statsghana)

GDP per capita

GDP per capita in 2009 was GHS 1,574, as compared to GHS 1,318 in 2008.

Ghana GDP per capita

(Source: statsghana)

GNI per capita at PPP

While, the GNI per capita at PPP decreased from USD 1,060 in 1980 to USD 868 in 1995, it thereafter increased. In 2010, the country’s GNI per capita was recorded at USD 1,385.

Ghana GNI per capita at PPP

(Source: UNDP)

Income tax rate

In Ghana, personal income tax rates range from 0% to 25%. Annual income up to GHS 2,400,000 is not taxable. Income above GHS 6,000,000 is taxed at 25%.

The tax rate for non-residents is 15%.

(Source: taxrates)

Corporate tax

In Ghana, standard corporate tax is 25%.

(Source: taxrates)

Inflation rate

The inflation rate in Ghana shows unsteady fluctuations, varying from a high of 20.7% in Q2 2009, to a low of 9.5% in Q2 2010. However, the inflation rate has declined since Q2 2009.

Ghana Inflation Rate

(Source: bog)

Foreign direct investment (FDI) inflow

From 2005 to 2008, FDI inflow increased from USD 144.97 million to USD 2,111.59 million. The country’s FDI inflow for the first two quarters of 2010 amounted to USD 1,415.07 million, compared to USD 1,677.84 million in 2009.

Ghana FDI Inflow

(Source: bog)

Banking sector assets

The table below shows the assets of Bank of Ghana:

 

Total Assets (GHS million)

End of Period

August 2010

December 2009

December 2008

Foreign Assets

4,711.9

4,528.1

2,445.5

Claims on Government

2,456.8

2,587.3

3,496.1

Claims on Public Corporations

109.4

54.5

16.5

Claims on DMBs

168.9

549.2

64.1

Other Assets

55.7

247.2

232.9

Total assets

7,502.7

7,966.4

6,255.2

 
(Source: bog)

[Top] Financial Indicators & Government Financial

Consumer Price Index

The consumer price index of Ghana is growing steadily in Q2 2010 was recorded at 344.5 as compared to 328.4 in Q1 2010.

Ghana Consumer Price Index

(Source: bog)

Interest Rate on Saving Deposit

In August 2010, the country’s interest rate on saving deposit was 6.75% while in the year 2009 it was highest i.e. 10%.

(Source: bog)

Interest Rate on Time Deposits

Interest Rates, August 2010 (%)

3-month

9.5

6-month

11.4

12-month

11.5

24-month

9.5

Certificate of Deposits

10.96

(Source: bog)

Money Supply

Money Supply (GHS million)

 

June 2010

June 2009

June 2008

Narrow Money (M1)

4,376.8

3,456.3

2,789.8

Broad Money (M2)

8,541.3

6,257

4,843.7

Broad Money (M2+)

11,080.9

8,620.9

6,197.6

(Source: bog)

Government Expenditure

Government expenditure in the first two quarters of 2010 amounted to GHS 4,963.56 million as compared to GHS 8,345.52 million in 2009.

Ghana Government Expenditure

(Source: bog)

Public debt

Public debt reflects in 2009 amounted to GHS 9,250 million as compared to GHS 7,989 million in 2008.

Ghana Public debt

(Source: bog)

Official Exchange Rate

GHS/USD official exchange rate was recorded at 1.43 in August 2010.

Ghana Exchange Rate
(Source: bog)

Government Financial well-being

Fiscal balance

Fiscal deficit for the first two quarters of 2010 is GHS 1,118.48 million as compared to a deficit of GHS 1,473.0 million in 2009.

Ghana Fiscal Balance

(Source: bog)

Total Revenue

Total revenue in the first two quarters of 2010 amounted to GHS 3,845.08 million as compared to GHS 6,775.17 million in 2009.

Ghana Total Revenue

(Source: bog)

Tax Revenue

Tax revenue for the first two quarters of 2010 amounted to GHS 2,860.41 million as compared to GHS 4,803.65 million in 2009.

Ghana Tax Revenue

(Source: bog)

Total Grants

The country’s total grants reflects maximum in 2009 i.e. 1,101.18 and minimum in 2005 i.e. 510.02.

Ghana Grants

(Source: bog)

Current Account Balance

The current account deficit of Ghana in 2010 is estimated to be 11.59% of the GDP as compared to a deficit of 5.16% in 2009.
Ghana Current Account Balance

(Source: IMF)

Balance of Payments

Balance of payments (USD million)

 

2010 (Till Q2)

2009

2008

2007

Current account

-1385.84

 

-1,200.75

 

-3,543.14

 

-2,121.82

 

Capital and Financial account

1803.77

 

3,067.06

 

2,806.41

 

2,652.30

 

Net Errors and Omissions

-218.26

 

-707.53

 

-204.02

 

-117.37

 

Overall Balance

199.67

1,158.78

-940.75

413.11

(Source: bog)

 

[Top] Labour Force and Employment Overview

Labour force

The labour force of Ghana in 2008 was 10.65 million.

Ghana Labour Force

(Source: World Bank)

Unemployment rate

In 2010, the unemployment rate in Ghana, for the age group of 20 to 24 year olds, is 21%.

(Source: allafrica)

Minimum wages

The daily minimum wage at the end of August 2010 was GHS 3.11, compared to GHS 2.65 at the end of 2009.

Ghana Minimum Wage

(Source: statsghana)

Level of unionisation

The major trade unions in the country are:

  • Ghana Federation of Labour (GFL)
  • Trades Union Congress (TUC)

(Source: ituc-csi.org)

[Top] Political Stability

Government stability

Ghana operates under a presidential democracy. Thus, the President is the head of state and also the head of government. The executive powers in the country are vested in the government. The legislative powers are with the government and the parliament.

The parliament is unicameral and is comprised of 230 members, who are directly elected for a term of four years.

(Source: mofep, IPU)

Regulatory environment

Ghana’s economic freedom score is 59.4, making it 95th freest country in 2011 Index of Economic Freedom. In the Sub-Saharan African region, the country is ranked 11th out of the 46 countries.

Ghana Economic Freedom Indices

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) measures the perceived level of corruption across countries worldwide. Ghana is ranked 62nd on the index indicating a low level of corruption in public departments.

(Source: transparency.org)

Freedom of information

Ghana is ranked 26th in the World Press Freedom Index 2010 with a score of 8.00.  This indicates that the country’s press operates without many restrictions.

Major newspapers in Ghana are:

  • The Ghanaian Chronicle
  • Daily Graphic
  • Daily Guide
  • Ghanaian Times
  • The Mail
  • The Mirror
  • The Independent
  • Ghana Palaver
  • Sunday Herald

(Source: BBC, rsf)

Judicial system

The judiciary of Ghana was established under the 1992 Constitution. This constitution established the judicial system as independent. The judiciary includes the Superior Courts of Judicature and the Inferior Courts, which adjudicate in both civil and criminal matters.

(Source: judicial.gov.gh)

[Top] Demographic Overview

The total population of Ghana in 2010 was estimated at 24.33 million, increasing 2.10% over 2009.

(Source: UNDP, World Bank)

In 2010, the gender ratio of the country was 102.8 males per 100 females.

(Source: UN)

In 2008, the under-five mortality rate in Ghana was registered at 80 (per ‘000).

The life-expectancy in Ghana, for males, is estimated at 56 years, and for females is 57 years.

(Source: mofep)

The crude birth rate of Ghana in 2009 is 32%.

(Source: UNICEF)

In 2009, individuals aged below 14  accounted for 38.4% of the total population. Alternatively, males and females above 60 accounted for 5.4% and 6% of the total population.

The major ethnic groups in Ghana are Akan, Mole Dagbon, Ewe, and Ga-Dangme. Additonally, the majority of the population follows Christianity and Islam.

(Source: state.gov)

In 2007, 49.3% of the population lived in urban areas. The urban population's growth rate from 2005-2010 was 3.5%, while the growth of rural population in the same period was 0.5%.

(Source: UN)

The country ranks 130th out of 169 countries on the Human Development Index (HDI) 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education). 

(Source: UNDP)

[Top] Soft Infrastructure

Education

The adult literacy rate is estimated at 67.3%. Additonally, the gross enrolment rate in education is 56.5%. The primary-secondary gross enrolment rate in the period  of 2005-2008, for females is 77.3%, and for males was 80.9%.

The expenditure on education in the period of 2005-2008 was 5.4% of the country’s GDP.

(Source: UNDP, UN)

Health care resources

The health care system in the country is supervised by the Ministry of Health. Thus, the various branches of the Ministry work in co-ordination with councils in cities, towns, and villages.

Additoanlly, the Ghana Health Service (GHS) is an independent organisation under the Ministry of Health, which is responsible for providing health services, focusing on primary health care at regional, district and sub-district levels.

The common causes of death in the country include, malaria, upper respiratory tract infections, diarrhoeal diseases, skin diseases and hypertension.

(Source: statsghana, ghanahealthservice.org)

[Top] Hard Infrastructure

Mass public transit

Public transport in the country is through roads, railways and airways.

Roadways

The total length of roadways in Ghana is about 62,221 km.

(Source:bymap)

Ports

The major ports in Ghana are: Port of Elmina, Port of Saltpond, Port of Takoradi, and Port of Tema.

(Source:worldportsoue)

Airports

The airports in the country are as follows:

 

Town

Airport name

Runway length (ft.)

Accra

Kotoka International

9,800

Kumasi

Kumasi

6,400

Navrongo

Navrongo

4,500

Sunyani

Sunyani

4,600

Takoradi

Takoradi AB

5,700

Tamale

Tamale

7,900

Wa

Wa

4,600

Yendi

Yendi

4,500

(Source:aircraft-charter-world)

Telecommunications networks

In 2009 the total number of internet users were 997,000, increasing 13.30% over 2008.

Ghana Internet Penetration

(Source:internetworldstats)

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