Government Statistician Dr Alhassan Iddrisu has explained Ghana’s Gross Domestic Product (GDP) per capita, clarifying that the figure represents an average economic measure and not money directly distributed to citizens.
Dr Iddrisu said Ghana’s GDP could be measured in both nominal and real terms, depending on whether the effects of price changes were included in the calculation.
He explained that nominal GDP reflects the value of goods and services produced in the economy at prevailing prices, while real GDP adjusts for price movements to provide a clearer picture of actual economic growth.
“It’s important to make the distinctio, anytime you measure GDP, we call it nominal because it has a price effect,” Dr Iddrisu said.
According to him, Ghana’s nominal GDP of approximately GH¢1.4 trillion includes the effects of prices, whereas real GDP, measured using 2013 prices, stood at GH¢209.6 billion.
He explained that the real GDP calculation removes the effects of price changes, making it possible to assess actual changes in economic output.
“So just one point four trillion Ghana cedis includes prices. It could be doing so well because inflation is too high. So you want to look at it in real terms,” he said.
Dr Iddrisu added that both nominal and real GDP figures were correct but represented different measurements of the economy.
The Government Statistician said GDP per capita was calculated by dividing the country’s economic output by its population, providing an average measure of economic output per person.
“If you distribute the GDP among the population, everybody is getting about GH¢42,502,” Dr Iddrisu said.
He, however, clarified that the figure did not represent money paid directly to individuals but rather an average statistical measure of economic output per person.
The explanation is expected to help improve public understanding of Ghana’s economic performance and the distinction between national economic output and individual income.
Source: Newspyramid.com
