Posted by: kvsonghai | 18 March, 2010

Ghana’s GDP May be Higher Than Previously Thought [Business Guide, Ghana]

The Business Guide newspaper in Ghana is reporting that sources have revealed to them that the Ghana Statistical Service (GSS) will soon reveal new statistics which will show Ghana’s GDP to 36-54% higher than had been previously known. This would suggest a $25bn-$35bn economy, not so far behind those of Kenya and just ahead of Tanzania. The report suggests that there are a multitude of economic activities within the economy which have not been ‘captured’ within the usually conducted analyses whilst calculating the total economic activity within the country.

According to the report, “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”.

Further to this, the Business Day article highlights the point that “[a]nalysts 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“.

The results of the re-basing of the GDP size and overall economic data collection process of the country, should be released alongside the quarterly GDP growth figures.

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