Ghana’s economy ranked 8th biggest in Africa

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World Bank

Ghana’s economy has ranked 73rd in the world in terms of Gross Domestic Product (GDP) for the year 2019 making it the 8th largest economy in Africa. The 2020 figures are not expected for another one year.

According to the World Bank, Ghana’s economy stood at about US$67 billion in size in 2019, making it the 8th biggest economy on the African continent.

The country’s economy was also ranked 141st in the world in terms of GDP per capita and the 143rd most complex economy, according to the Bretton Wood institution’s Economic Complexity Index.

The wide disparity between Ghana’s ranking by size of the economy and its ranking by per capita is worrying economists as it implies that residents are not benefitting enough from the economy compared averagely with the other countries of the world. The rankings also imply that Ghana’s economy is not complex enough to match its size; indeed, it still relies on primary commodities – gold, cocoas and crude oil – for most of its export revenues leaving it vulnerable to external price shocks. It is also over-reliant on imports for most of its consumer goods and industrial inputs.

On the upside however, Ghana is one of the faster growing economies in the world, ranking 34th with its 5.6 percent growth rate in 2019 and 46th for its five-year average growth rate of 4.6 percent over the period 2015 to 2019.

Due to the adverse economic impacts of Covid-19, the total value of goods and services in the economy shrank to about US$63 billion dollars last year, though there are expectations that it will expand to US$70 billion by the end of this year as economic growth resumes.

The economy is expected to grow at a rate of 4.6 percent this year according to the World Bank (although government expects it to grow even faster, by 5.0 percent) and this will be driven by sub sectors such as Information and Communication, Real Estate, Crops and Livestock.

Presently, the services sector is the biggest sector with an estimated size of a little above GH¢172 billion. It is followed by industry which is about GH¢140 billion in size and agriculture which is estimated at about GH¢73.8 billion.

Globally, the United States of America is the biggest economy with a size of US$21.43 trillion.

China and Japan follow in 2nd and 3rd with economic sizes of about US$14 and US$5 trillion dollars respectively.

But beyond the fundamental economic indicators, Ghana has been ranked across a pot-pourri of indicators covering economic performance, fiscal performance, international trade performance, competitiveness of the operating environment for business, socio-economic loving standards and the likes.

The world’s 10 biggest economies in 2020

Country                    Nominal GDP (US$)                     Per Capita Income (US$)

  USA                                 21.43 trillion                                       65,298

  China                              14.34 trillion                                       10,262

  Japan                              5.08 trillion                                          40,247

  Germany                                       3.86 trillion                                          46,455

  India                               2.87trillion                                            2,100

  United Kingdom                                         2.83 trillion                                           42,300

  France                            2.72 trillion                                           40,493

  Italy                                2.0 trillion                                               33,228

  Brazil                              1.84 trillion                                             8,718

  Canada                                          1.74 trillion                                             46,195

Ghana World Economy Ranking:

Find below Ghana’s rankings in the world by an array of indicators Economic indicators provided by The World Bank. Freedom indexes by The Heritage and Cato Institute. Human development data from the United Nations Office of Drugs and Crime. Rankings are out of 230 countries.

Gross Domestic Product & Income

Stat        Ghana   Rank

GDP       $65.6B  73

GDP growth, 1 year          5.6%      34

GDP growth, 5-years average       4.5%      46

Population          26.9M   50

GDP per capita   $2.2k     142

GDP per capita growth    3.96%    39

Purchasing Power Parity conversion factor             2.13       113

Price level ratio of PPP conversion factor GDP to market exchange rate      0.46       101

GDP per capita, PPP adjusted        $6.5k     136

GNI, Atlas method            $63.4B  73

GNI per capita    $2.1k     138

GNI, PPP adjusted             $138.5B               78

GNI per capita, PPP adjusted        $4.7k     140

Financial system and Human development

Stat        Ghana   Rank

Income Tax Rate              35%       131

Corporate Tax Rate         25%       99

Inflation, consumer prices             9.8%      170

Inflation, GDP deflator    10.2%    162

Unemployment  6.7%      118

Economic Freedom Index              59.4       113

Personal Freedom Index 7.64       64

Human Freedom Index    7.21       66

Property Rights Index      52.5       103

Judical Effectiveness Index            46.1       82

Business Freedom Index 58.4       117

Fiscal Health Index           35.6       146

Labor Freedom Index      59.3       93

Investment Freedom Index           70           53

Financial Freedom Index 60           44

Trade Freedom Index      63.8       145

Monetary Freedom Index              68.9       152

Government Spending Index         88.1       26

Tax Burden Index              78.4       88

Government Integrity Index          32.2       119

Corruption Perceptions Index       41           95

Life expectancy at birth, years     63.5       166

Suicide mortality rate, per 100,000 people              5.4         73

Mortality caused by road traffic injury, per 100,000 people              24.9       153

Intentional homicides, per 100,000 people             2.1         74

International tourism, number of arrivals 897k      119

Government debt & reserves

Stat        Ghana   Rank

Central government debt, % of GDP          59.6%    70

External debt stocks, % of GNI     36.3%    74

External debt stocks        $23.3B  38

Short-term debt, % of total reserves         57.7%    25

Total debt service, % of exports and primary income          9.4%      72

Adjusted net savings including particulate emission damage, % of GNI         -8.4%     142

Gross savings, % of GDP 21%       89

Gross capital formation, % of GDP             14.9%    159

Total reserves including gold        $6.3B     87

Foreign direct investment net inflows       $3B        51

Exports, imports and economic structure

Stat        Ghana   Rank

Exports of goods and services, % of GDP  35.3%    101

Imports of goods and services, % of GDP 36.4%    119

Current account balance (balance of payments)    -$2B       134

Revenue excluding grants, % of GDP         27.2%    63

Grants excluding technical cooperation, BoP         $713.6M              35

Personal remittances received     $3.5B     38

Industry including construction value added, % of GDP       31.5%    52

Agriculture, forestry and fishing value added, % of GDP     18.3%    42

Government Expenditure, % of GDP          20%       152

–Goldstreet

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