Glossary
Plain-English definitions of the economic terms used most often in StatsGH stories.
- Average lending rate
- The typical interest rate banks charge on loans to businesses and households.
- Bond yield
- The annual return on a government or company bond. Yields rise when investors see more risk or expect higher inflation.
- Cedi appreciation
- A rise in the cedi's value, so fewer cedis buy one unit of foreign currency. It makes imports cheaper.
- Cedi depreciation
- A fall in the cedi's value against another currency, meaning more cedis are needed to buy one dollar, pound or euro. It makes imports dearer.
- Cocoa production
- The quantity of cocoa beans harvested and bought in a season, usually measured in tonnes. Cocoa is a top export earner.
- Consumer Price Index (CPI)
- A measure of the average price of a fixed basket of goods and services bought by households. The Ghana Statistical Service publishes it monthly.
- Core inflation
- Inflation excluding volatile items such as energy and some food, used to see the underlying price trend.
- Crude oil price (Brent)
- The world benchmark price of a barrel of crude oil. It feeds into Ghana's fuel pump prices and oil revenue.
- Current account
- A record of trade in goods and services plus income and transfers with the rest of the world, including remittances.
- Debt restructuring
- Renegotiating the terms of existing debt — lower interest, longer repayment or reduced principal — when a borrower cannot pay as agreed.
- Debt-to-GDP ratio
- Government debt as a share of the economy's annual output. A higher ratio means debt is larger relative to the country's ability to pay.
- Eurobond
- A bond Ghana issues on international markets, usually in US dollars.
- Exchange rate
- The price of one currency in another, for example how many cedis buy one US dollar.
- Fiscal (budget) deficit
- When government spending exceeds its revenue in a period. It is often shown as a share of GDP.
- Food inflation
- The year-on-year rise in the prices of food and non-alcoholic drinks within the CPI.
- Foreign direct investment (FDI)
- Investment by foreign companies or individuals in businesses and assets in Ghana.
- Fuel pump price
- The price per litre of petrol or diesel at the pump, set in pricing windows by fuel companies under NPA guidelines.
- GDP growth
- How much the economy's output grew compared with the same period a year earlier, after adjusting for price changes.
- Ghana Revenue Authority (GRA)
- The agency that collects taxes and customs duties in Ghana.
- Gold exports
- The value or volume of gold Ghana sells abroad — its largest export by value.
- Government revenue
- Money the government collects, mainly taxes, plus grants and other income such as oil revenue.
- Gross Domestic Product (GDP)
- The total value of goods and services produced in Ghana over a period. It is the broadest measure of the size of the economy.
- Gross international reserves
- Foreign currency and gold held by the Bank of Ghana. Often expressed as months of import cover — how long reserves could pay for imports.
- GSE Composite Index (GSE-CI)
- An index tracking the overall price movement of shares listed on the Ghana Stock Exchange.
- IMF programme (ECF)
- A loan arrangement with the International Monetary Fund, paid in tranches when Ghana meets agreed economic targets.
- Inflation rate
- How much prices have risen compared with the same month a year earlier. 5% inflation means something that cost GHS 100 a year ago now costs about GHS 105.
- Inflation target
- The Bank of Ghana aims to keep inflation at 8%, within a band of plus or minus 2 percentage points.
- Interbank rate
- The interest rate banks charge each other for short-term loans. It usually moves close to the policy rate.
- Market capitalisation
- The total market value of a company's shares, or of all shares on an exchange.
- Monetary policy rate
- The Bank of Ghana's main interest rate. It guides what banks charge each other and their customers; raising it aims to slow inflation.
- Money supply (M2+)
- The total amount of money in the economy, including cash and bank deposits. Fast growth can push inflation up.
- Non-food inflation
- The year-on-year rise in prices of everything in the CPI basket except food, such as rent, transport and utilities.
- Non-oil GDP
- Economic output excluding oil and gas production, showing how the rest of the economy is doing.
- Non-performing loans (NPL) ratio
- The share of bank loans where borrowers have stopped paying as agreed, usually for 90 days or more.
- Poverty rate
- The share of people living below a set poverty line of income or consumption.
- Primary balance
- The government's budget balance excluding interest payments on debt. A surplus means revenue covers spending before interest.
- Producer Price Index (PPI)
- Measures changes in the prices producers receive for their output. It often signals future consumer price changes.
- Public debt
- The total amount the government owes to domestic and foreign lenders.
- Remittances
- Money sent home by Ghanaians living abroad. It is a major source of foreign currency.
- Trade balance
- The value of exports minus imports. A surplus means Ghana sold more abroad than it bought.
- Treasury bill (T-bill) yield
- The annual return investors earn on short-term government borrowing, usually 91, 182 or 364 days. Higher yields mean government borrowing costs more.
- Unemployment rate
- The share of people in the labour force who are without work and actively looking for it.
- Utility tariff
- The approved price for electricity or water, set by the Public Utilities Regulatory Commission (PURC).
- Value Added Tax (VAT)
- A tax added to the price of most goods and services at each stage of sale, paid finally by consumers.