Since 2019, Ghana’s economy kept on extending, with real GDP growth estimated at 7.1%. In 2019, Ghana maintained its moderate fiscal and current account deficits, single-digit inflation, and a relatively stable exchange rate. The fiscal deficit improved from 3.5% of GDP in 2018 to 3.4% in 2019.
The West African nation that sits on the Atlantic Ocean and outskirts Togo, Cote d’Ivoire, and Burkina Faso, has a populace of 31,072,940. In the last 20 years, especially the most recent four years, it has taken significant steps toward majority rule government under a multi-party system, with its free legal executive winning public trust.
Ghana reliably positions in the top three nations in Africa for freedom of speech and press freedom, with solid broadcast media, and radio being the medium with the best reach. Factors, like these provide Ghana with strong social capital.
Just about four years in office, The President Nana Akuffo-Addo has denoted some successes actualizing a portion of its promises, for example, planting for food and jobs and free second education. Be that as it may, he also faces some difficulties satisfying a portion of his political pledges—including setting up a factory for every one of the country’s 216 regions, one dam for each town.
Ghana’s economy continue expanding with the non-oil growth additionally solid at 6.0%. The generally high quarterly growth was driven by a solid recuperation in the service sector which grew by 7.2% contrasted and 1.2% in 2018.
The government proceeded with its monetary combination endeavors in 2019 despite the fact that there were actually difficulties in meeting the income targets. Financial execution for the main portion of 2019 indicated a general spending deficiency (on money premise) of 3.3% of GDP higher than the objective of 2.9% of GDP. This is on the grounds that the income shortages of 1.6% of GDP was higher than consumption cuts of 1% of GDP.
Private sector credit became more grounded, upheld largely by a very much capitalized banking sector. Inflation continued to be in single digits in the first half of year 2019; continuously ascending from 9% in January to 9.5% in April 2019 but decreased to 9.1% in June 2019 mostly driven by low food expansion.
Ghana’s current account in the first half of 2019 was estimated at a surplus of 0.1% of GDP supported by favorable trade conditions of Ghana’s three main export commodities—oil, gold and cocoa, resulting in a trade surplus of 2.8% of GDP.
The current account surplus, combined with significant inflows to the capital and financial accounts, resulted in an overall balance of payments surplus equivalent to 1.9% of GDP. With the issuance of the $3 billion Eurobond in March 2019, the international reserves significantly improved in 2019 with Gross International Reserves (GIR) of $8.6 billion (equivalent to 4.3 months of import cover) at the end of June 2019.
Meanwhile, the cedi went under severe pressure in the first quarter of 2019, because of high demand, as shippers looked to restock their provisions, but in the subsequent quarter, the homegrown cash market turned out to be generally more settled. The Ghana cedi aggregately devalued by 8.2% in the year to July 18, 2019.
As at now (2020), the Inflation rate is 9.65%, and it is required to remain within the Central Bank’s target range over the medium term. Keeping up a monetary solidification position and remaining on an economical way through the 2020 political elections cycle will be a test throughout the next few months, as the nation prepares for a national Presidential elections.
Moreover, Ghana’s energy sector is also in control, nonetheless, the sector is confronting some slight difficulties including its gaseous petrol supply.
According to a monetary forecast for Ghana in 2020, the U.S. economy was relied upon to decrease by 8% in 2020, yet the IMF sees it bouncing back 4.5% in 2021—somewhat lower than the 4.7% it had recently figure in April 2020.
This year has been fairly delayed for Ghana because of the worldwide pandemic taking over basically everything on the planet.
As per the World Bank and IMF, Ghana is one of the fastest growing economy on the planet, with it economic strength growing consistently. Ghana is the world’s second-biggest producer of cocoa, which is likely also a motivation behind why the West African nation is the landmass’ and the world’s leader with regards to economic strength. But, unlike in the agricultural sector, in which a lot of Ghanaians are playing a role, investments in the mining and oil sectors have been largely foreign-led.
2021 is only months away, and if Ghana would need to fortify its economy in all sectors, then the country need to boost the private sector activity, ensuring that the private area is driving development.
Furthermore, it also requires making development comprehensive since that is one of the key necessities for continuing a high development rate for a significant stretch of time. Ghana will also need to boost technological innovations and get more young people involved in sustaining and improving the country’s economic performance.
GDP in Ghana is expected to reach 50.00 USD Billion by the end of 2020, according to Trading Economics global macro models and analysts expectations. In the long-term, the Ghana GDP is projected to trend around 58.00 USD Billion in 2021 and 64.00 USD Billion in 2022, according to our econometric models.