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A
PRESENTATION ON
FACTORS AFFECTING
ECONOMIC GROWTH I N
THE GHANAIAN
ECONOMY
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Basic concept of economic growth
Factors that affect economic growth
How these factors affect economic
growth in the Ghanaian economy
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Economic growth is the increase in
the real gross domestic
product(GDP) of a country over a
period of time . It is measured as the
percentage rate of increase in the
GDP. The economic growth for 2011
was 14.4%, 2012 7.1% and 2013 8.0%
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Currency strength
Interest rate
Unemployment
Balance of payment
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It express the value of a country’s currency
with respect to other currencies.
Several factors determine the strength of a
country’s currency including:
The purchasing power of the currency.
Presently 1 USD goes for GHS 2.8225
Supply, demand and inflation will cause
changes to a currency’s relative worth.
Thus a strong currency plays a key role in
economic growth.
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It can briefly be explained as the
amount charged expressed as a
percentage of a principal by a lender to
a borrower for the use of an asset.
The benchmark interest rate in Ghana
was last recorded at 18%.
Interest rate in Ghana was averaged at
16.56% from 2002 until 2014 and it is
only determined by the Central Bank
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The importance of employment to human
sustenance and a country’s development
cannot be overemphasized.
To a nation employment is not only a catalyst
to growth but also a means to poverty
reduction.
The unemployment level stood at 2.8% in 1984
and increased to 10.4% in 2000. After a short
fall of 6.5% in 2008, it later moved to 8.5% in
2010 and increased by 4.2 million in 2012.
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It can be expressed as the monetary value of
exports and imports in an economy over a
certain period of time .Ghana's BOP deficit shot
up to $2.3 billion at the end of 2012,a rise
exceeding 798% of the $288million recorded for
the corresponding period of 2011.
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Despite the fact that the global economic
recession cannot be denied, and that even
countries with stronger economies are feeling
the full force of the recession, the economic
destiny of Ghana remains in her own hands.
Policies have to be reviewed, institutions have
to be strengthened, and above all government
has to be more accountable if the economic
future of Ghana would be anything to write
about
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