Ghana’s economy size now $35bn

Last Updated: Wednesday, 17 March 2010, 9:57 GMT

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Ghana's economy appears to be much bigger than the $16 billion that was earlier estimated.

Though the Head of Economics and Statistics at the Ghana Statistical Service (GSS), Magnus Ebo Duncan, will not reveal the actual size of the economy as the review of the national economic output would be released next month, BUSINESS GUIDE learnt that the country’s economy has a size of between $25-35 billion.

The review of the national economic output would consider the years 2006, 2007, 2008 and 2009 and as well capture activities currently excluded from the official data including funeral costs, cash dispenser user charges, air travel and private education.

According to him, everything has almost been completed but some experts are still reviewing the methodology among others.

“Generally I don’t know a country that has re-based its national account that there is no increase”.

Last year the country’s economy size in provisional terms was a little over $21 billion in current Gross Domestic Product (GDP) but the review which will take into account the 2006 base year for prices, would give a bigger figure of the economy.

“The picture points out that there is an increase in the size of the economy. Look at the number of roads that are asphalted, vehicles on the roads, the significant growth in the telecommunication sector and the banking sector”, he emphasized.

He explained that there have been shifts in the sectoral contribution and some activities which were unimportant have now been considered.

“The basket will be increased to include the informal sector and others as well,” said Asuo Afram, Head of Pricing at the GSS.

Importantly, Ghana’s economy saw significant growth in the last five years where there were increases in the number of banks, insurance firms, telecommunication companies, reduction in the poverty rate from about 35 percent in 2002 to 28.5 percent in 2005 among many others.

The re-sizing of the $16-billion-a-year Ghanaian economy, which will benefit from oil revenues from the huge Jubilee Oil Field by December this year, is expected to include two components that could potentially inflate the GDP level.

Analysts argued that a bigger GDP would mean Ghana’s fiscal deficit was not as large as feared and perhaps, did not require the high dosage of austerity measures prescribed.

World Bank Country Representative, Dr. Ishac Diwan had earlier told Reuters that the move to review the economy would prompt many to reassess their view of the Ghanaian economy, already one of the largest in West Africa and one of the few to have launched a Eurobond. The $750 million bond was launched in September 2007.

South Africa, a middle-income country, in 2007 was ranked the biggest economy in Africa with a size of $467.6 billion, followed by Egypt with $431.9 billion.

Nigeria, an oil producing country; Algeria, also oil producing country and Morocco followed suit with economy sizes of $294.8 billion, $268.9 billion and $127 billion respectively.

Sudan, Angola, Libya, Tunisia and Kenya were ranked 6th, 7th, 8th, 9th and 10th respectively with economy sizes of $107.8, $80.95, $78.79, $77.16 and $57.65 billion.

Ghana with its rich natural resources such as minerals and cocoa, was among the top 20 on the continent. Its provisional growth rate estimates for last year was 4.7 percent, a drop from the previous 7.3 percent.

Meanwhile, the quarterly GDP rate of the country will be released alongside the size of the economy.

Source: Business Guide/Ghana

I think every African country should revise its GDP and include the informal sector. Currently I'm working in a regional economic community where we are working on recording the informal cross-border trade (i.e. mainstreaming it so that it's formal). It's supposed to be implemented in 10 countries on the continent, starting with Zambia, ZImbabwe and Malawi. It would be interesting to see how trade figures will change as a result.

^^i always believed the economies of most African countries are underestimated, its high time we revalue the GDP of the African nations, this could give them more bargaining power and attraction of FDI:cheers:

I think every African country should revise its GDP and include the informal sector. Currently I'm working in a regional economic community where we are working on recording the informal cross-border trade (i.e. mainstreaming it so that it's formal). It's supposed to be implemented in 10 countries on the continent, starting with Zambia, ZImbabwe and Malawi. It would be interesting to see how trade figures will change as a result.


Some countries in Africa have 90% informal sector.
Morocco for example had 60% informal sector..

If this was counted, Africa would have a bigger GDP....

Some countries in Africa have 90% informal sector.
Morocco for example had 60% informal sector..

If this was counted, Africa would have a bigger GDP....

^^yep, that is why i am thinking that we might as well having more than 2 trillion dollars in terms of GDP in the continent:dunno:

really?
I know countries like Nigeria & SA have huge informal economies!

What would constitute as informal?

Which sectors will be considered as informal?

I'm glad to hear that Ghana's GDP is now over $35 billion instead of $16 billion. Hopefully that it will grow even more this year and the next. I heard that Ghana's GDP growth rate in 2010 will be 6 to 7% and 22% for 2011.

What would constitute as informal?

Which sectors will be considered as informal?

The informal sector of an economy is usually defined as the sectors that cant be taxed or measured officially by the state,
u know your street vendors,small scale farmers,traders,taxi drivers,bus drivers,hairdressers,barbers...and so-on

in Nigeria its probably up to 60%

most of these ppl dont use the banks,cant be taxed directly,so the usual way to measure income does not apply. . .

A little unprofessional journalism as the headline claims "35 billions" while it's then clarified in the text that the numbers haven't been released and that the true figures are between 25-35 billions.

(But of course I wouldn't mind seeing Ghana's economy grow as fast as possible)

The informal sector of an economy is usually defined as the sectors that cant be taxed or measured officially by the state,
u know your street vendors,small scale farmers,traders,taxi drivers,bus drivers,hairdressers,barbers...and so-on

in Nigeria its probably up to 60%

most of these ppl dont use the banks,cant be taxed directly,so the usual way to measure income does not apply. . .

If Nigeria does include the informal sector like what Ghana will be implementing, then Nigeria's GDP will be higher than its projected $308 billion next year. I do believe that many African countries will have its GDP going upwards if they re-evaluate their figures by including informal sectors.

I went to Ghana last year and I can tell you that it does appear that Ghana's GDP has always been under-reported. There were so many people in Ghana who were selling goods and services -- informally. Plus, there were a lot of taxis and buses (tro-tro's). Mobile phones were increasingly prevalent in Ghana.

A little unprofessional journalism as the headline claims "35 billions" while it's then clarified in the text that the numbers haven't been released and that the true figures are between 25-35 billions.

(But of course I wouldn't mind seeing Ghana's economy grow as fast as possible)

African journalism; they start off with a lie to grab your attention then recant their original claim, leaving you bewildered. :lol:

African journalism; they start off with a lie to grab your attention then recant their original claim, leaving you bewildered. :lol:

^^its also the norm in Kenya:lol::lol:

The informal economy, is even larger than the formal one in many African nations.

African journalism; they start off with a lie to grab your attention then recant their original claim, leaving you bewildered. :lol:

The standard of journalism in Africa is nothing short of laughable.

The problem with the informal sector is that its impossible to even estimate so Im not sure I agree with this move.

It's very hard to calculate the informal economy's total percentage of GDP because it tends to be very volatile from year to year.

African journalism; they start off with a lie to grab your attention then recant their original claim, leaving you bewildered. :lol:

:lol::lol:


But seriously, how do you even map and calculate the informal economy? I see people throwing around figures like 40% 50% and 60% and I really would like to know from where these figures come from and how you get there.

:lol::lol:


But seriously, how do you even map and calculate the informal economy? I see people throwing around figures like 40% 50% and 60% and I really would like to know from where these figures come from and how you get there.

They make them up. I think they call it guesstimations, pretty scientific :)

They make them up. I think they call it guesstimations, pretty scientific :)


Ah, I see. Sounds like something that most economists seem to be involved in. :P

They make them up. I think they call it guesstimations, pretty scientific :)

:lol:

Wasn't there a thread on this before? Or has there been another recalculation? :uh:

They make them up. I think they call it guesstimations, pretty scientific :)
Well not counting the informal economy, also does not give a true account of the size of the economy. The least they can do is that everybody in the informal economy eat food to stay a live on a daily basis, which I assume, then the cost of daily food can be calculated. And if everybody in the informal economy has a cellphone and if the cost to maintain it cost per month let's say $25.00 then you know that person has to have an income of at least $25.00 plus cost of daily food. This is just an example, but I supposed the economist will have a more thorough way of calculating that gets closer to the actual income on the ground.

Ghana is growing.

Gold Coast City Master Plan

http://www.pspaec.com/images/stories/PUBLIC-GOVERNMENT/Gold Coast City Master Plan/SLIDES_600x400/GoldCoastCity_SLIDE_01.jpg

http://www.pspaec.com/images/stories/PUBLIC-GOVERNMENT/Gold Coast City Master Plan/SLIDES_600x400/GoldCoastCity_SLIDE_02.jpg

http://www.pspaec.com/images/stories/PUBLIC-GOVERNMENT/Gold Coast City Master Plan/SLIDES_600x400/GoldCoastCity_SLIDE_03.jpg

http://www.pspaec.com/images/stories/PUBLIC-GOVERNMENT/Gold Coast City Master Plan/SLIDES_600x400/GoldCoastCity_SLIDE_04.jpg


Accra, Ghana

Gold Coast City will be the new downtown of Accra, Ghana, and the new capital city of Africa. Conceived as a totally planned community, it will be a model for sustainable design and economic development. The first phase of this mixed-use development will include 3.2 million square feet of green space, retail, office towers and residential development.

The distinctly African character of Ghana will be captured in the design of the many people places and gathering areas. Sidewalk cafes and vendor kiosks will contrast with commercial and residential towers. Small plazas and courtyards filled with shoppers, tourists and business people will further enliven the 24-7 environment.

The entire Gold Coast City is organized and aligned along a grand boulevard and esplanade that bisects the site. Commercial office towers and parking garages will provide the backdrop for a three-level shopping galleria. A five-star hotel sited in an extensive national garden and arboretum will link directly to the Efua Sutherland Park. Accessed via Second Avenue, residential towers with private recreational amenities will afford views of both the ocean and the city.


NEWS: FLASH:

Due to politic pettiness this exciting project including a 5 star kempinski Hotel has been put on hold by the new government. Why? Africa politicians... why?


Its moving forward:banana:

Gold Coast City Project Takes Off Next Month

A US$1.55-billion modernisation project stretching from the Osu Castle along the sea front to the Arts Centre in Accra is to commence next month.

The 160-acre Gold Coast City Project will consist of residential villas and apartments, a shopping mall, a school complex, a recreational centre, a hotel and an office complex, including a World Trade Centre.

The residential apartments, estimated to house about 600 families, are made up of a 124-unit villa, 216 three-unit flats and a 10-unit apartment block of 260 flats.

The project will also see the construction of a six-floor 500-room five-star hotel, a three-floor shopping mall with ice hockey and ice skating facilities, a 21-floor World Trade Centre (WTC), a four-floor modern school complex, a 15-floor office complex for the Ministry of Tourism and a mini golf course.

The commercial development project, which is aimed at changing the face of Accra, is being promoted by Strategic Initiatives Limited with funding from Shuguang Group Company Limited, Guoqiang Construction Group Company Limited and Gemfy Group, all of China.

As part of the component of the project, a US$55-million fund has been earmarked for the relocation of ministries along the coast which will be affected by the project.

The initiator of the four-year project, Togbe Afede XIV, who briefed the Minister of Tourism, Mrs Zita Okaikoi, and his Deputy, Mr Kobby Acheampong, the Osu Mantse, some elders of the Osu Traditional Council and some members of Nai We, said the project, originally intended for either Dubai, Thailand or Angola, was diverted to Accra through his influence, and that it would make the city a tourist centre, which will generate both local and foreign revenues.

According to Togbe Afede, the overall objective of the project is to develop and sustain the entire stretch of the marine drive along the coast in the area.

He said the purpose of the project was to support the sea front development in Accra, as well as improve on sanitation in the area.

He said the project was expected to create social, physical and commercial infrastructure that would attract investment and tourists into the country.

Togbe Afede said the WTC Association, based in New York, had awarded Strategic Initiatives Limited the exclusive licence to build a WTC in the country and according to him, this would encourage most businesses across the country to locate their headquarters in the building.

The Minister for Tourism, in an address, said the siting of the project in Accra was going to help lift the image of Accra and Ghana as a whole.

She said the government had lent its full support to the project and expressed the hope that final arrangements needed would be sorted out for the project to start in March, 2010 as scheduled.

She said her ministry would ensure that the people of Accra were not left out of the proceeds and advantages the project was likely to bring to the capital, saying that it would help create jobs locally, as well as generate revenue for the development of other areas of the city.

The Osu Mantse, Nii Nortey Owuo III, commended the initiation of the project in the area and expressed the hope that it would first consider the youth of Osu so as to help limit the rate of unemployment in the area.

The Osu Stool Secretary, Nii Okwei Nortey, in a remark, called on the initiators of the project to consider other coastal areas in the city for a uniform development of the Accra coastal plain.

The Spokesperson for the Nai We, Henry Nii Yartey Yartey, also gave the family’s consent for the commencement of the project and expressed the hope that it would boost local tourism.

this is great for ghana. i read a new epoert that says tha ghanasoil will only make up 5 percent of tha national revenue. that is bad. the ghanaian goverment are rushing with the oil and making bad deals. they sell one barel of oil for $50 but most other countries like uganda nigeriaangola are selling it ofr around $100. anyway i hope it all goes well . well done ghana.

:cheers:

-- Aceone

That's amazing!! I hope that the Gold Coast City Project goes through. Do you know when this whole project will be completed?

Wasn't there a thread on this before? Or has there been another recalculation? :uh:

Yeah, I remembered seeing this type of news before but I think that it was hidden from the other African business news threads.

According to the Ghanaian Finance Ministry, they are going to release the recalculated GDP figures right after when they release the Q1 2010 growth rates. I also heard that they are planning on releasing a 2 Ghana Cedi note.