Ghana’s economy kept on expanding in 2019 as the principal quarter total national output (GDP) development was assessed at 6.7%, contrasted and 5.4% in a similar time of a year ago. Non-oil development was likewise solid at 6.0%. The moderately high quarterly development was driven by a solid recuperation in the administrations division which developed by 7.2% contrasted and 1.2% in 2018.
The government continued with its fiscal consolidation efforts in 2019 despite the fact that there were still difficulties in meeting the income targets. Financial execution for the main portion of 2019 demonstrated a general spending deficiency (on money premise) of 3.3% of GDP higher than the objective of 2.9% of GDP. This is on the grounds that the income shortages of 1.6% of GDP was higher than consumption cuts of 1% of GDP.
Private area credit became more grounded, bolstered generally by the well-promoted banking division. Expansion kept on being in single digits in the initial a half year of 2019; step by step ascending from 9% in January to 9.5% in April 2019 yet decreased to 9.1% in June 2019 for the most part determined by low nourishment swelling.
Ghana’s current account in the first half of 2019 was evaluated at an excess of 0.1% of GDP bolstered by good exchange states of Ghana’s three principle send out wares—oil, gold and cocoa, bringing about an exchange overflow of 2.8% of GDP.
Main sectors of Industry
Farming records for about 20% of GDP and utilizes the greater part of the workforce, predominantly little landholders. Gold, oil, and cocoa fares, and individual settlements, are significant wellsprings of outside trade. Extension of Ghana’s beginning oil industry has supported financial development, yet the fall in oil costs since 2015 diminished considerably Ghana’s oil income. Creation at Jubilee, Ghana’s first business seaward oilfield, started in mid-December 2010. Generation from two additional fields, TEN and Sankofa, began in 2016 and 2017 separately. The nation’s first gas preparing plant at Atuabo is likewise delivering flammable gas from the Jubilee field, giving capacity to a few of Ghana’s warm power plants.
Taxes in Ghana
The general corporate income tax (CIT) rate is 25%.
Mining and upstream oil companies pay 35% CIT, while organizations primarily occupied with the inn business pay a diminished rate of 22%.
The CIT rate for organizations dealing with non-conventional exports is 8%, while banks loaning to the horticultural and renting areas pay a CIT pace of 20% on pay from those organizations.
The NFSL (National Fiscal Stabilization Levy) applies to indicated organizations and establishments to raise income for financial adjustment of the economy. The NFSL is 5% on the benefit (bookkeeping benefit) before charge on indicated organizations. The predetermined organizations and foundations include:
- Banks (excluding rural and community banks).
- Non-bank monetary institutions
- Insurance agencies
- Media communications organizations at risk to gather and pay the correspondences administration charge (CST) under the CST Act, 2008 (Act 754)
- Review and valuation organizations.
- Transportation lines, oceanic and air terminal terminals.
Investing in Ghana
There is a high demand for various financial services in Ghana, as supported by the consistent high growth of companies in the banking sector.
Ghana provides a wide range of possibilities for companies entering the construction market.
Most non-emergency government contracts for road construction are open to both local and international companies through a process of competitive bidding.
Foreign-based companies continue to enter the market and in sectors, such as oil and gas, the recent introduction of the local content laws means that a large number of foreign companies operating in Ghana require local partnerships in order to be allowed to do business.
Electricity accounts for 69% of modern energy used in the economy. The Government of Ghana has in recent times engaged in discussions with various investors regarding the construction of power plants.
Significant mining investment has been attracted into the country over some 21 years of stable multi-party democracy. The mining sector has therefore been an important part of Ghana’s economy, with gold accounting for over 90% of the sector.