The Economy Environment in Ghana
Ghana's economic freedom score is 59.8,a 0.6 increase from 2021 making its economy the 89th freest in the 2022 global Index.
- Ghana is ranked 9th among 47 African countries in the Sub-Saharan Africa region in the year 2022.
- Inflation rate is extremely high. The most recent annual inflation rate reported (August 2022) is 33.9%, 31.7% as the previous rate.
- The Gini index coefficient is 43.5 % (2016), ranked 39th globally.
- As of 2021, GDP is $77.59B (8th in Africa) with an annual growth rate of 5.36% (16th in Africa). In 2020, the Real GDP (PPP) was $164.84B, making It the 10th in Africa and 73rd globally.
- GDP per Capita for Ghana is $2,445.29 (18th in Africa)with an annual per capita growth of 3.2% (2021) as well as GDP per Capita, PPP was $5,623.81 making it the 16th highest in Africa and slightly below Africa’s average of $5,774.58.
Export and Import
- Major Export commodities in 2019 are gold, crude petroleum, cocoa products, manganese, and cashews.
- Major Import Commodities in 2019 are metal tubing, ships, cars, refined petroleum, rice.
- Cost of Starting a Business in Ghana is 12.3% of income per capita far below the continent’s average rate of 33.35%, 36th highest in Africa, and 75 out of 186 globally in 2020.
- Mining, lumbering, light manufacturing, aluminum smelting, food processing, cement, small commercial ship building, and petroleum are some industrial commodities.
- The industrial production growth rate of 2017 was 16.7%, 2nd highest globally.
- Investment Freedom Index for Ghana is 70 points, above Africa’s average of 51 points sitting 4th in Africa and 51st globally (2022).
- Business Freedom Index for Ghana is 61 points, above Africa’s average of 46 points sitting 4th in Africa and 86th globally in the year 2022.
- Ghana has a Cost of Living Index of 57.69 points, making it the 28th highest in Africa and 118th globally (2017).
Credit rating of Ghana
- Fitch rating for the year 2022: B
- Credit rating for Ghana is Moody’s rating: Caa1 (2022).
- S&P rating for the year 2022 is – CCC+
- Interest rate as of October 2022 is 24.5%, with no change compared to the previous year.
- The Corporate tax rate as of December 2021 is 25%, as well as the Personal Income Tax rate, was also 30%.
The value of USD has appreciated against the local currency by 67.25% over the past year. The most recently reported (September 2022) exchange rate is 10.0766 Ghanaian Cedi per US$1.
Negative impacts on Economy
- Unemployment rate is below Africa’s average of 10.41%.
- The most recently reported unemployment rate as of 2021 is 4.7% making it the 37th highest rate in Africa and 130th globally.
- Ghana has the 34th highest African female unemployment rate of 4.96% (2021) and 39th in Africa with male unemployment of 4.48%.
- With a 68.42% labor force participation rate (ranked 20 in Africa and 39 globally).
