Ghana’s economy in recent times has been growing at a higher rate compared to other countries in the West African region. For instance, the economy accelerated to 8.1% in 2017 (World Bank 2019). The country’s economy has a market base component with less investment and trade policy barriers. Its natural resource endowment is also massive. Some aspects of the economic growth of the country can be attributed to the oil discovery a few years back, increasing foreign direct investment, agriculture, and industrial development, amongst others.
The country, like other African countries, is heavily dependent on its agriculture sector to provide for most of its economic needs and also employs a large number of the labor force in the country. The sector contributes to about 20% of the country’s GDP (CIA, 2019). The major commodities that generate foreign exchange for the country are cocoa, oil, and gold. According to the World Bank (2019), the economy accelerated to 8.1% in 2017 attributed to growth in the oil and mining sector. The economy’s growth in 2018 was much slower compared to that of 2017 with a figure of 5.6%. However, growth in 2019 is expected to be higher with a target of 7.4%, which is much higher than the 5.6% in 2018 (World Bank 2019). This is also expected to be driven by the oil, gas and mining sectors.
The economy is being faced with various challenges, some of which are the issue of electricity and its distribution amidst falling oil prices. This notwithstanding, there is the recent crisis in the banking industry where bank owners are losing their firms due to the financial sector clean up by the current administration. This is happening as a result of the failure of these banks to meet the minimum requirement set by the Central Bank of Ghana. In spite of this, the business environment in Ghana is still sound and booming.
One sector that is growing at a faster pace at the moment in Ghana is the real estate industry. The sector is being patronized by both domestic and foreign investors or multinational organizations who want either office space or accommodation for their workers and expatriates.
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