About threefifths of the gdp is derived from the services sector, agriculture contributes almost onefifth, and industry about onefourth. Ghana has one of the highest energy access rates in subsaharan africa. Making the power and petroleum sectors rise to the challenge, world bank other operational studies 16264, the world bank. Pdf growth in demographic requirements, increased urbanization and rural electrification. In the past 15 years, ghana has added about 1,000 megawatts mw of thermal generation capacity. Trade represents a significant portion of ghanas economic growth, with exports and imports accounting for 44% and 50% of gdp respectively. Ghana gdp annual growth rate data, historical chart, and calendar of. Factors affecting growth in ghanas services economy jennifer baumert powell, office of industries jennifer.
Pdf disaggregated energy consumption and economic growth. Accra, july 2, 20 the world bank ghana office officially launched today a flagship energy sector report which highlights some of the daunting challenges facing ghana s power and petroleum subsectors, and which threaten to undermine ghana s bid to become a fullyfledged middle income country. Economic growth and energy consumption in an emerging. Ghana gdp growth rate 20062019 data 20202022 forecast. Gold, oil, and cocoa exports, and individual remittances, are major sources of foreign exchange. Disaggregated energy consumption and economic growth in ghana. Energizing economies initiative rural electrification agency. The main objective of this report is to provide the new government of ghana with recommendations on the actions needed to improve the performance of ghana s energy sector. Between 1946 1950 gold export rose from 6 million pounds to 9 million pounds. It was the slowest expansion since the second quarter of 2018, due to a slowdown in both the services and industrial sectors. Making the power and petroleum sectors rise to the challenge.
Gold and cocoa exports, and individual remittances, are major sources of foreign exchange. Production at jubilee, ghanas offshore oilfield, began in middecember 2010. As a result, ghanas current generation capacity of 2,125 mw is made up of about 50% hydro and 50% thermal plants. Headline economic growth will be strong, but it will be concentrated in the oil and gas sector, which is. The assessment was geared toward energizing economic growth, since the severe energy crisis ghana went through had led to a loss of 5. Nonoil growth is expected to accelerate to 6% as the governments new policies in the agriculture sector and the promotion of. Ghana economic growth and development ghana is officially known as the republic of ghana, is one of the most important countries in west africa.
Imf attributes the projections to ghanas improved macroeconomic performance for the last two years and the strong economic growth in 2018. Ghanas electricity sector has huge potential for development, to ease the countrys. Accra, july 2, 20 the world bank ghana office officially launched today a flagship energy sector report which highlights some of the daunting challenges facing ghanas power and petroleum subsectors, and which threaten to undermine ghanas bid to become a fullyfledged middle income country. Ghanas growth booms and busts have been closely linked to crude since. This rapid increase in machinery imports had a substantial. Much of the contents of this paper is informed by two reports. Ghana economy, politics and gdp growth summary the. Ghana economy to be among the fastest in growth in 2018. Economic growth is a sustained increase in a countrys national income or output due to an increase in the countrys production. And oil is not the only resource helping to drive ghanas economy.
This is not yet known in the electricity consumption and economic growth literature in ghana. Apr 11, 2018 ghana economic growth rate more than doubles in 2017 to 8. Making power and petroleum sectors rise to the challenge, june, 20. Production at jubilee, ghanas first commercial offshore oilfield, began in middecember 2010.
The electricity situation in ghana center for global development. Ghana economy gdp, inflation, cpi and interest rate. Ghana the human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender. The national goal is to achieve universal access to electricity by 2020 e. Energizing economic growth in ghana world bank documents. Economic growth, labour standards and social equity. Endowed with gold and oil palms and situated between the trans saharan trade routes and the african coastline visited by successive european traders, the area known today as ghana has been involved in all phases of africas economic development during the last thousand years. Currently, there are other intermediate inputs that can equally affect.
Nonoil growth is expected to accelerate to 6% as the governments new policies in the agriculture sector and the promotion of agribusiness begin to take effect. Pdf a bivariate causality between energy consumption and. About the energizing economies initiative the energizing economies initiative eei is a federal government of nigeria initiative implemented by the rural electrification agency rea that aims to support the rapid deployment of offgrid electricity solutions to msmes in economic clusters such as markets, shopping complexes and agricultural. If economic growth greater production of goods and. Renewable energy situation of ghana and sustainable. Before independence the governments role was confined mainly to the provision of such basic utilities as water, electricity, railways, roads, and postal services. Ghana recent economic developments ghanas economic growth record over the past two decades has been among the strongest in africa at around 4. This page provides the latest reported value for ghana gdp growth.
Political stability is underpinned by ghanas strong democratic credentials. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor education. Political stability is underpinned by ghana s strong democratic credentials. Economic growth and inflation real gdp grew by an average rate of 6. Economic growth and development economic growth rate is the rate of change in real income or real output. One prominent view is that the correlation between aid and growth is, at best, weak burnside and dollar, 1997.
Aid only appears to be effective in countries with appropriate economic policies, i. The troubling rationing system, the slowdown in industrial activity, job and income losses, and disruptions in social life are telling reminders of what now seems a perennial drag on ghanas development agenda. Economic and social development before 1957 1874 gold mine in wassa and asante. The main objective of this report is to provide the new government of ghana with recommendations on the actions needed to improve the performance of ghanas energy sector. Ghana economic outlook african development bank building. Ghana economic growth and development economics tutor2u. Factors affecting growth in ghanas services economy. Since then, most scholarly analyses have tended to focus on what the new democratised states should do in order to consolidate democracy. Between 2012 and 2014, lng could have been delivered on a fasttrack basis. Thinking big and reforming ghanas energy sector include. Therefore, the aim of this study is to critically examine the extent to which electricity consumption influences economic growth in ghana. These have given ghana one of the highest gdp per capita in west africa.
Assessing the total economic value of electricity in ghana. Understanding ghanas growth success story and job creation. Pdf improving electricity access in ghana challenges and the. Economic growth and energy consumption in an emerging economy. Expansion of ghanas nascent oil industry has boosted economic growth, but the fall in oil prices since 2015 reduced by half ghanas oil revenue. This study note covers aspects of economic growth and development in ghana ghanas economy is the second biggest in west africa and it is booming helped by strong exports of cocoa, gold and oil. The economy is a mixture of private and public enterprise. With economic growth, energy production in ghana is less than energy demand. Production is traditionally affected by land, labour, and capital according to the classical economists. Ghana is gradually building industrial capacity, and growth in industry is projected at 9. The economy of ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. Ghana is located near the golf of guinee and the atlantic ocean, and it is spread on a surface of 238,535 km. This has generated investor confidence and attracted foreign investment that has led to general economic growth.
Ghana gdp annual growth rate 20002019 data 20202022. In january, ghanas benchmark stock index achieved the worlds highest rate of growth, 19 percent, according to bloomberg. Ghana is one of africas most established democracies with a history of free elections and changes in government between the main parties. The gross domestic product gdp in ghana expanded 1. Fastforward to the present day, the west african nation has staged a remarkable comeback and is predicted to be the worlds fastest growing economy in 2019. Carbon dioxide emissions, economic growth, and selected. Macroeconomic effects of a lowcarbon electricity transition in kenya and ghana. Trade and economic factors favour growth, but ghanas high fiscal deficit presents uncertain danger. Nevertheless, inadequate and unreliable power supply remains a major constraint to future economic growth. Ghanas growth booms and busts have been closely linked to crude since it became a producer in 2010, when tullow plc started. Energizing economic growth in ghana report by kennedy fosu. Research in business and economics journal economic growth and energy, page pproach rexford abaidoo.
Economic growth is a sustained increase in a countrys national income or output due to an increase in the countrys production capacity. International journal of energy economics and policy vol. The principal foreign exchange earning products are gold, oil, and cocoa. As a result, ghana s current generation capacity of 2,125 mw is made up of about 50% hydro and 50% thermal plants.
Macroeconomic performance and outlook ghanas economy continued to expand in 2019, with real gdp growth estimated at 7. This study note covers aspects of economic growth and development in ghana ghana s economy is the second biggest in west africa and it is booming helped by strong exports of cocoa, gold and oil. Nov, 2018 ghana economic growth and development ghana is officially known as the republic of ghana, is one of the most important countries in west africa. Recent trends reflect more machinery in the countrys import basket. Dec 31, 2017 20171231 ghana s economy will be among the fastest in growth in the world in 2018, massively improving the lives of the citizens of the west african country, a major global economics report. Improvements in the macroeconomic environment were accompanied by expansion in domestic demand due to increased private consumption. The economy and regime change in ghana, 19922004 85 landscape resulting in the collapse of undemocratic regimes and the rise of democratic governments gyimahboadi, 2004. Prepared by a team of world bank staff and local experts, during a period of electricity. The neutrality hypothesis is supported if there exists no causal relationship between energy consumption and economic growth, indicating that a reduction in energy consumption has no adverse in. The government will prioritise industrialisation as a means of job creation and economic growth, but structural weakness will restrain the pace of progress. The main objective of this report is to provide the government of ghana with recommendations on the actions needed to improve the performance of ghanas energy sector. Ghana economic growth rate more than doubles in 2017 to 8. Poverty is still widespread in ghana despite the relatively high economic growth in the past two decades.
During the 90s, most countries in latin america and the caribbean region lcr supported by the world bank, implemented a marketoriented reform in the energy sector to promote competition, economic regulation and greater private sector participation, as the main instruments to improve the quality, reliability and efficiency of energy services. While ghana has committed itself to universal electricity access by 2020, the real challenge is the. Disaggregated energy consumption and economic growth in ghana article pdf available in international journal of energy economics and policy 21. The last two ghana living standard surveys showed that income inequality, as measured by the gini coefficient, increased from 0. The countrys growth rate reached its peak of 15 per. The report focuses on the power and petroleum sectors, taking account of the interdependence between the sectors, and providing recommendations for how they can, together. This calls for further investigation between electricity consumption and economic growth in ghana. High growth momentum since 2017 has consistently placed ghana among africas 10 fastestgrowing economies. Stock market and economic growth in ghana, kenya and nigeria. Pdf renewable energy situation in ghana and future prospect. Electricity is a key determinant for economic growth in.
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