Comparison of Growth of Overall GDP on Three Sectors of the Ghanaian Economy: A Time Series Analysis from 2001-2020

Abstract

The Ghanaian economy has been growing for the past three decades, but growth, redistribution, and sustainability have all faced obstacles. The economy has been largely grown in three major sectors of the economy i.e., Agriculture, Service and Industry after 64 years of independence. This article is a comprehensive discussion of the contribution of three sectors of the economy to the overall GDP, and it does cover all of the nitty-gritty intricacies of the Ghanaian economy. Finally, the paper seeks to provide some thoughts on the literature for readers on the state of the Ghanaian economy from 2001 to 2020, taking into account the contributions of three major economic sectors. The researcher based the dataset on the work of several researchers and included a significant quantity of fresh data from both primary and secondary data sources such as the Ministry of Finance (MOF), the Bank of Ghana, the Ghana Statistical Service, and the World Bank. The data were gathered from the website of the MOF, Bank of Ghana and the Ghana Statistical Service. The conclusions of the study found that there is a positive relationship between overall GDP (domestic and external) and growth in Ghana’s economy, and urge, among other things, that government debt borrowing be discouraged and tax reform initiatives be promoted. According to the findings, interest rates should be kept low enough to allow individuals and investors to borrow and invest while also allowing the economy to expand through industrialization, which will enhance the trade balance and economic growth by raising aggregate demand or income.