World Bank data says Ghana’s GDP tripled in the last 17 years
Data from the World Bank and iterated by the Ghana Human Development Report 2023 (GNHDR) indicate that the size of Ghana’s economy in nominal terms increased from $24.8 billion in 2005/2006 to $79.5 billion in 2021 but then declined to $74.3 billion by the end of 2022.
Similarly, the country’s per capita income increased from $1,047 to $2,353 between 2007 and 2022.
Thus, between 2007 and 2022, the Ghanaian economy tripled in size and per-capita income doubled.
Within the period, Ghana’s economy grew, on average, about 7 percent per annum, recording a growth rate of 14 percent in 2011 when the income from petroleum came on stream, and 8.1 percent in 2017, partly due to an increase in commodity prices.
However, growth in the economy the World Bank notes, did not translate into improvement in employment and declines in poverty and inequality as employment rate declined from 68.8 percent in 2006 to 65 percent in 2017 and dropped further to 50 percent in 2021 but increased in 2022 to 58 percent.
Per the 2023 GNHDR report published by the United Nations Development Programme (UNDP), the paradox of Ghana’s high economic growth rate and slow progress toward reducing poverty and inequality suggests that economic growth over the years was unable to create opportunities for people to earn income which would eventually change their poverty status.
This, the report asserts, was due to the fact that the growth in the economy occurred primarily in sectors that are less labour intensive such as natural resources extraction (mostly capital intensive) and Services (mainly Financial and ICT services) which are technology driven.
“Therefore, the economic growth could not generate the required jobs, a situation often referred to as “jobless growth” in economic literature,” the report added.
The report further revealed that Ghana’s workforce is grappling with meaningful employment opportunities, noting that despite high economic growth over the past decade, the informal sector accounts for 75% of the workforce, and youth unemployment and underemployment remain a major challenge.
The findings from the report also indicate that young people aged 15-24 are disproportionately impacted by unemployment, with a significant 65% experiencing joblessness.
The report posits that this trend has implications for the country’s long-term development goals and human development, highlighting the need for targeted interventions to address youth unemployment and promote inclusive economic growth.
Themed “The Future Value of Work in Ghana: Pathways to Sustainable Jobs”, the report highlights the need for Ghana to bridge the gap between current opportunities and the future of work through strategic investment in both human capital and infrastructure to create a conducive environment for sustainable jobs for all.
