Download Contribution of the service sector to economic growth

ECONOMY OF GHANA.
Contributions of the Service Sector
to Ghana’s Economic Growth
The service sector; the
driver of Ghana’s Economy.
Overview
 Introduction
 Challenges faced by the service sector.
 Key intervention that has gone into the sector.
 Contributions of the service sector to Ghana’s
economic growth
 Conclusion.
INTRODUCTION
What is economic growth?
Indicators of economic growth include
Rate of savings
Natural resource endowment
Human capital
Political stability and
Technological advancement
 The sub-sectors of the service sector icludes;
Trade, repair of vehicle and
household goods
Hotels ad restaurants
Real estates, professional and
administrative activities
Public administration and
social security
Health and social work
Social and personal service
activities
Information and
communication
Education
Financial and insurance
activities
Transport and storage
Challenges of the service sector
 Unavailability and high cost of
capital
 Negative attitude towards work
 Poor quality of service
 Difficulty in accessing tax.
 Lack of expertise.
Key interventions that have gone into the sector
1.
2.
3.
4.
5.
6.
Formulation of the new banking law.
Privatization of state own enterprises like
SG-SSB, Ghana Airways and Ghana
Telecom.
Establishment of regulatory body, the
national communication authority.
The introduction of the metro mass
transport fleet to some urban areas to ease
traffic.
The national health insurance scheme.
The school feeding programme.
CONTRIBUTIONS TO GDP
 Currently the largest
contributor to GDP.
 Witnessed successive rise
in GDP contribution from
27% during 1991-1995 to
30% during 2001-2006
and now 50.6% as at 2013.
SECTORIAL CONTRIBUTIONS
TO GDP
SERVICE
SECTOR
28.1
50.6
21.3
AGRICULTUR
AL SECTOR
INDUSTRIAL
SECTOR
Revenue generation
 Statistics show that 25% of
company profit find their way into
government coffers,
 The hospitality industry promotes
tourism and it is relevant to
mention that tourism in 2010
contributed USD1.8B to
government.
 Income tax as well is a major
source of government revenue.
Creation of employment
 The service sector account for
about 47% f the total Ghanaian
labor force.
 Direct employment from
tourism rose from about 19,000
in 1996 to 52,742 in 2006.
 In 2010, the hospitality subsector
through tourism created
290,000 jobs.
 In 2012 also, available statistics
indicates that the information
and communication sector
created 1.5million jobs including
self-employment.
Facilitates the work of other sectors
 The service sector serves as a
medium through which other
sector of the economy.
 Serves as a market for finished
goods of the other sector.
 Source of labor for other sector.
 Serves as a financial market for
other sectors.
 Provides a media of advertising and
promoting goods and services of
other sectors.
END OF
PRESENTATION