Agriculture, primarily small-scale, is the mainstay of the economy, accounting for 36% of GDP (2000) and some 60% of the workforce. The main export crop, cocoa, generates 30-40% of foreign exchange earnings. Gold and timber are the other main generators of foreign exchange. The industrial sector accounts for some 25% of GDP, of this manufacturing, which is relatively well-developed and diverse, accounts for 9% of GDP. The services sector, which accounts for around 32% of GDP, is an important contributor to economic activity. There is considerable untapped tourism potential.

Although Ghana has twice the per capita output of poorer West African countries, it remains heavily dependent on international financial and technical assistance.

Labour market and unemployment

Ghana's labour force numbered 8.7m in 1998 and is projected to grow by 50% to reach 12m by 2001.

Agriculture, forestry & fishing

Around 20% of Ghana’s arable land is under cultivation, providing a livelihood for 1.4m people. However, dependent on weather, agriculture's performance is highly unpredictable. Cocoa, which accounts for 30-40% of total exports, is the main crop, but other food crops and livestock are by far the most important contributors to output, making up around 25% of GDP. Other crops include cassava, cotton, coffee, palm oil and sugar. Over 90% of agricultural production is carried out by peasant smallholders on plots of one hectare or less who produce most of Ghana's cocoa. More recent expansion in the cocoa and forestry sub-sectors, policy changes and good weather has in recent years led to improved production, although structural obstacles continue to constrain the performance of this sub-sector. Major reforms in the cocoa sector aim to boost total production from current levels of around 400,000 tonnes (previously 450,000 in the 1960s when Ghana was the world’s largest producer), to 700,000 tonnes by 2009.

The commercial forestry sub-sector accounts for only 4% of agricultural output, but is the third largest foreign-exchange earner. More than one-third of the Ghana's total land area covered by forest and there are over 200 species of tropical hardwood. Fishing contributes 5% to GDP.

Mining

Mining accounts for around 6% of GDP. Gold dominates the mining sector and is one of Ghana's two most important sources of foreign exchange. The country has vast reserves which lie in the Ashanti region. The diamond sector has a history of corruption, smuggling and poor management as there is extensive illegal mining and a thriving parallel market. Output had declined since the peak of 1,4m carats in 1990. Ghana is one of the world's largest exporters of manganese. 

Industry & manufacturing

Ghana has a broad and diverse industrial sector, focussed on aluminium smelting, sawmills, timber and agricultural processing plants, brewing, cement manufacture, oil refining, textiles, electricals, pharmaceuticals, mining and others. The government is encouraging the growth of value-adding agro-industries and textiles.

Services

This sector which accounts for about 32% of GDP comprises largely trade and public services. Financial services have improved in recent years with the introduction of a new stockmarket, the Ghana Stock Exchange, and several new financial institutions. Recent efforts to develop the tourism sector have led to a rapid growth in international tourists. Retail services, although still limited, are strong in the urban areas. 

Government  finance and fiscal policy

Ghana’s relations with the World Bank and IMF were good from the late 1980s with Ghana closely following policy advice in a series of structural adjustment programmes. In 1994 the government launched the Vision 2020 programme guiding economic policy. However, the imposition of targets and policies by the donor organization which were not compatible with the demands of people at the grassroots, coupled with poor fiscal control in 1996/7, resulted in a cooling down of relations with donors and the three-year enhanced structural adjustment facility with the IMF was suspended until March 1998. The 1998-2000 ESAF programme with the IMF, now renamed the Poverty Reduction and Growth Facility aims to reduce inflation through monetary restraint. In recent years there has been an acceleration of the privatization programme, and a commitment to structural reform, notably in the ongoing liberalization of the cocoa sector and placing of greater emphasis on manufacturing and export to diversify the economy and generate jobs. Although very few of the economic performance targets set by the World Bank were met in 2000, the result largely of commodity prices plunging, the international donor community continues to support Ghana.

Domestic debt has grown considerably since the mid-1990s, averaging about 31% per year between 1996 and 2000, interest payments accounting for 19% of government expenditure in 2000. Such a debt burden deprives the government of the resources needed to support economic growth. Ghana's external debt has more than quadrupled from US$1,4bn in 1980 to US$6,97bn in 2000. Hoping to reduce debt to sustainable levels, in a surprise move the government has applied for external debt relief under the heavily indebted poor countries (HIPC) initiative. Approval hinges on the submission of a new Poverty Reduction Strategy Paper.

Regional  and International economic grouping/alliances:
		Organization of African Unity/African Union
		Economic Community of West African States (ECOWAS)
		EU-ACP Convention