Ghana operates a mixed economy, with a dominant agricultural sector. The sector employs the largest proportion of Ghana’s economically active population. Key activities in the sector are food cropping and livestock, cocoa production and marketing; forestry and logging; and fishing. The industrial sector is composed of the mining & quarrying, manufacturing, electricity and water & construction sub-sectors. Among the minerals produced in the country are gold, bauxite, manganese and diamonds. The mining sub-sector is one of the leading foreign exchange earners for Ghana, although the manufacturing sub-sector contributes the largest proportion of the total output of the sector. The services sector is the fastest growing sector. It is the most diversified, made up of wholesale & retail trade; restaurants & hotels; infrastructure services; financial services; community, social & personal services, as well as private non-profit services.
Despite the prevailing global economic downturn, the economy of Ghana has been able to maintain some resilience. The fundamentals of Ghana’s economy are reasonably stable. For 2014 GDP was provisionally estimated at 6.9 percent, down from a revised target of 7.1 percent and the 2013 growth of 7.6 percent. In a reversal of trends in recent times, the Agriculture Sector recorded the highest growth of 5.3 percent in 2014, followed closely by the Services and Industry Sectors each by 4.6 percent. In the medium term, real GDP is estimated to grow at an average rate of 6.8 percent, while non-oil GDP is projected to grow at an average of 4.4 percent. The Industry Sector is projected to be the lead sector over the medium term with an average growth of 11.4 percent, followed by the Services Sector with 6 percent and the Agriculture Sector with 3.6 percent.
The 2015 financial and economic policy of Ghana has been developed within the broad framework of the Ghana Shared Growth and Development Agenda (GSGDAII), 2014-2017. The medium term vision of Government in the GSGDA II is: “A stable, united, inclusive and prosperous country with opportunities for all”. Ghana’s successful structural transformation is anchored on three strategic interventions namely:
- strengthening and deepening the essential elements and institutions of good governance;
- promoting export-led growth through products that build up on Ghana’s comparative strength in agricultural raw materials; and
- anchoring industrial development through prudent use of natural resources based on locally processed value addition.
Based on the macroeconomic framework, the specific macroeconomic targets to be pursued for the medium term (2015- 2017) include the following:
- An average real GDP (including oil) growth rate of at least 6.8 percent;
- An average non-oil real GDP growth rate of at least 4.4 percent;
- An inflation target of 8 percent with a band of ±2 percent;
- An overall Budget Deficit of 3.5 percent by 2017
- Gross International Reserves which will cover not less than 4 months of imports of goods and services by 2017.
The specific macroeconomic targets for 2015 are as follows:
- Non-oil real GDP growth of 2.7 percent;
- Overall real GDP (including oil) growth of 3.9 percent;
- An end year inflation target of 11.5 percent;
- Overall budget deficit equivalent to 6.5 percent of GDP; and
- Gross international reserves of not less than 3 months of import cover of goods and services.
Additional information on Ghana’s economy may be accessed from the websites of the Ministry of Finance and the Central Bank of the Republic of Ghana:
Ministry of Finance : www.mofep.gov.gh
Bank of Ghana : www.bog.gov.gh