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Ghana’s economy to hit US$70B in 2021

The size of Ghana’s economy is expected to jump from US$62.8B to hit US$70B by the end of the year, Fitch Solutions, the research arm of Fitch Ratings, has revealed in its April 2021 West Africa Monitor.

This will translate into per capita income of US$2,206 in 2021, from US$2,020 recorded last year.

However, the Ghana Statistical Service will this Wednesday [21st April, 2021] release the actual growth rate estimate of the country for last year.

Also, the total value of goods and services produced in the country is expected to go up by US$5B to US$75.5B next year, and further to US$83.2B in 2023.

This will firm up Ghana’s position as the 8th biggest economy in Africa.

The economy is forecast to hit 4.5% this year with all the sectors contributing to some extent to the relative appreciable growth rate for this year. Sub sectors that are expected to drive the Gross Domestic Product (GDP) growth rate are Information & Communication, Fishing and Real Estate.

Also read: Ghana raises US$3B via 4-year zero-coupon bond

But the question many have been asking is whether the high growth rate is translating into jobs and improvement in the livelihood of the people.

Exports including gold, cocoa and oil have all been buoyant so far in 2021, whilst ports, construction and passenger arrival at the airport, according to the Bank of Ghana’ updated Composite Index of Economic Activity have picked-up.

Meanwhile, Nigeria, Egypt and South Africa will remain 1st, 2nd and 3rd biggest economies on the continent. Nigeria’s economy is presently estimated at US$466B.

Top 10 biggest economies in Africa in 2020

CountryNominal GDP (US$)Per Capita Income (US$)
  Nigeria                           466               2,210.00
  Egypt                           374.89               3,610.00
  South Africa                           317.19                 5,240.00
  Algeria                          147.323                  3,331.08
  Morocco                           112.220                  3,121.38
  Kenya                           101.048                   2,075.22
  Ethiopia                           95.588                   974.09
  Ghana                            69.757                   2,266.00
  Tanzania                            64.123                    1,105.55
  Angola                             62.724                    2,021.31

Source: Further Africa

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