A brief about Ghana’s Economy
Ghana's economy is not as strong as it was during the 1960s, when cocoa prices dropped sharply, undermining the country's fundamental stability.
The current state of Ghana’s economy is dire. Food prices are rising, the cost of fuel is sky-high, and taxes have become too high. This is putting economic pressure on the country’s public sector workers, including nurses, lecturers, and police officers. Even those in the government are feeling the pain, with unemployment at 13.4%.
Food and fuel are the two biggest drivers of price hikes in Ghana. Fuel has risen by more than 30% in the last year. Food inflation has increased from 12.8% in December 2021 to 17.4% in February 2022. Non-food inflation rose by 14.5%. The high inflation is putting a lot of pressure on the country’s already strained public services.
Ghana’s economy is not as strong as it was during the 1960s, when cocoa prices dropped sharply, undermining the country’s fundamental stability. In addition, widespread corruption exacerbated the situation and eventually led to Nkrumah’s overthrow. The military took over in 1966 and left behind a nearly bankrupt country.
Although Ghana’s economy has remained relatively strong in recent decades, it is not yet up to par with other developing and emerging economies. Its unemployment rate is still higher than in other countries in sub-Saharan Africa. But the country’s recent efforts towards a more stable democracy and a favourable taxation structure have helped the country’s manufacturing sector grow. The country’s economy is in a state of transformation, but there are still challenges ahead.