Name: Mustapha Temitayo

Mat no : 170902062
Course: Population Economics
Dep: Economics

GROSS DOMESTIC PRODUCT

1. The gross domestic product (GDP) comparison shows that Nigeria's GDP is 3.52% of
Ghana's GDP. GDP is a commonly used indicator to measure the economic output of a country.
It represents the total value of all goods and services produced within a country's borders in a
specific time period, usually calculated annually. By comparing the GDP of two countries, we
can gain insights into their relative economic size and performance.In this case, the fact that
Nigeria's GDP is 3.52% of Ghana's GDP implies that Ghana's economy, in terms of total output,
is slightly larger than Nigeria's economy. While the difference may not be significant, it indicates
that Ghana has a relatively stronger economic position when compared to Nigeria.
2. The negative growth in GDP per capita (-13.2%) for Nigeria suggests a decline in economic
output per person, while Ghana's positive growth of 3.3% indicates an increase in economic
output per person. In the case of Nigeria, the negative growth of -13.2% in GDP per capita
signifies a decrease in economic output per person. This decline can be attributed to various
factors such as a decrease in overall economic activity, lower productivity, or a faster population
growth rate compared to economic expansion.Conversely, Ghana's positive growth of 3.3% in
GDP per capita indicates an improvement in economic output per person. This positive trend
implies that Ghana has experienced an increase in economic activity, higher productivity, or a
population growth rate that is not outpacing economic growth. It's important to note that GDP
per capita alone cannot capture the full range of economic conditions or reflect the distribution
of wealth within a country. Other factors, such as income inequality, social indicators, and living
standards, should also be considered for a comprehensive understanding of the economic well-
being of a nation's population.
3. The inflation rate in Nigeria (0.8%) indicates a relatively low level of inflation, while Ghana's
negative inflation rate (-7.7%) suggests a decrease in the general price level, which could
potentially lead to deflation. Inflation is the rate at which the average prices of goods and
services in an economy increase over time. It is typically measured using an inflation rate, which
compares the average price level in a given period to a previous period. Inflation can have
significant impacts on an economy, including affecting the purchasing power of consumers,
business planning, and overall economic stability.In Nigeria, the inflation rate of 0.8% suggests
that the general price level is experiencing a relatively modest increase. This low level of
inflation indicates a certain degree of price stability, which can be beneficial for consumers as it
helps maintain the purchasing power of their income. Additionally, it provides a more predictable
environment for businesses to make investment and planning decisions.On the other hand,
Ghana's negative inflation rate of -7.7% indicates a decrease in the general price level. This
situation is referred to as deflation, where prices are generally falling. Deflation can have both
positive and negative impacts on an economy. While falling prices may seem beneficial to
consumers in the short term, they can lead to reduced consumer spending as people delay
purchases in anticipation of further price declines. This can result in decreased business
revenues and potential job losses, ultimately impacting economic growth.It's important to note
that both inflation and deflation can have complex causes and consequences, and policymakers
often aim to maintain a stable inflation rate within a target range to promote economic stability
and growth. Monitoring and managing inflation is a crucial task for central banks and
policymakers to ensure a healthy and balanced economy.
4. Nigeria's higher unemployment rate of 14.4% compared to Ghana's 0% implies that Nigeria
faces a higher level of unemployment, indicating potential challenges in the labor market.
Nigeria's higher unemployment rate of 14.4% compared to Ghana's 0% does indeed imply that
Nigeria faces a significantly higher level of unemployment. This stark contrast indicates potential
challenges in Nigeria's labor market and raises concerns about the country's economic stability
and social well-being.
5. Unemployment rates serve as important indicators of a country's economic health, reflecting
the proportion of the labor force that is actively seeking employment but unable to find suitable
jobs. Nigeria's unemployment rate of 14.4% indicates that a considerable portion of its
workforce is jobless, which can have profound implications for the overall economy and
society.The higher unemployment rate in Nigeria suggests a number of underlying issues in the
labor market. One major factor contributing to this disparity could be the difference in economic
structures and development between the two countries. Nigeria, as the most populous country
in Africa with a large and diverse economy, may face greater challenges in generating sufficient
employment opportunities to meet the needs of its growing population. In contrast, Ghana's
smaller population and relatively stable economic conditions may contribute to a more favorable
employment situation.
6. The growth in fiscal balance in Nigeria at 2.5% indicates a relatively moderate improvement
in the government's fiscal position. This means that Nigeria's government has been able to
reduce its fiscal deficit or increase its surplus by a modest amount. While any improvement is
positive, a growth rate of 2.5% suggests that the progress may not be as significant as desired.
It indicates that Nigeria's government still needs to address challenges in managing its revenue
and expenditure more effectively to achieve a more substantial improvement in its fiscal
position.
On the other hand, Ghana's growth in fiscal balance at 17.4% suggests a more substantial
improvement in the government's fiscal position. This indicates that Ghana's government has
made significant progress in reducing its fiscal deficit or increasing its surplus. The higher
growth rate of 17.4% indicates that Ghana has been more successful in managing its fiscal
affairs, implementing effective policies, and generating revenue while controlling expenditure.
8. The growth in government debt in Nigeria at 4.1% suggests a moderate increase in the
country's debt burden. This means that Nigeria's government has taken on additional debt at a
relatively moderate pace. While some increase in government debt is not uncommon, it is
important for the government to manage its borrowing carefully to avoid an excessive debt
burden that can hinder economic growth and stability.
In contrast, Ghana's growth in government debt at 11.5% indicates a higher rate of increase in
government debt. This suggests that Ghana's government has been borrowing at a faster pace,
leading to a more substantial increase in the country's debt burden. High and rapidly growing
government debt can pose risks to a country's economy, including higher interest payments,
reduced fiscal flexibility, and increased vulnerability to financial crises.

8. The yield on the government's 10-year bond in Nigeria at 14.49% is lower than Ghana's yield
of 29.85%. This indicates that bondholders in Nigeria are receiving a relatively lower return on
their investment compared to those investing in Ghana's bonds. Lower bond yields in Nigeria
suggest that investors perceive the country's sovereign debt as less risky and therefore demand
a lower return.In contrast, the higher yield on Ghana's 10-year bond suggests that investors
require a higher return to compensate for the perceived higher risk associated with investing in
Ghana's sovereign debt. This could be due to factors such as higher levels of government debt,
political instability, weaker economic fundamentals, or market perceptions of higher default
risk.It's important to note that bond yields are influenced by various factors, including market
conditions, investor sentiment, economic indicators, and government policies. The yield
differential between Nigeria and Ghana's bonds reflects the varying levels of perceived risk and
investor confidence in the two countries' economies
9. Nigeria's higher investment spending (33.83%) compared to Ghana's (18.55%) suggests that
Nigeria is allocating a larger portion of its resources towards investment, which can be crucial
for economic growth. Investment spending typically includes expenditures on infrastructure
development, research and development, education, and other productive sectors of the
economy. By prioritizing investment, Nigeria aims to enhance productivity, stimulate economic
activity, and create a solid foundation for long-term growth.
10. The gross national saving in Nigeria (3.12%) is slightly higher than Ghana's (3.1%),
indicating that both countries have relatively low levels of national savings. Gross national
saving refers to the total amount of savings, including both public and private savings, within a
country. Low levels of national savings can pose challenges for financing investment and
economic development. It suggests that there may be limited resources available for domestic
investment, and countries may rely on external sources of funding to meet their investment
needs.
11. Nigeria's currency unit is the Naira, while Ghana's currency unit is the Cedi. The Nigerian
Naira is denoted by the symbol "₦", while the Ghanaian Cedi is represented by the symbol "₵".
The Central Bank of Nigeria oversees the issuance and regulation of the Naira, while the Bank
of Ghana is responsible for the management of the Cedi. These currencies are used for
everyday transactions within their respective countries and play a crucial role in facilitating
economic activities, trade, and financial transactions.
12. The currency of Nigeria is the Nigerian Naira (NGN), denoted by the symbol "₦". The
Central Bank of Nigeria (CBN) is responsible for issuing and regulating the Naira. The Naira is
further divided into subunits called kobo, with 100 kobo equaling 1 Naira. However, due to
inflation, the value of the kobo is minimal, and prices are generally rounded to the nearest
Naira.while The currency of Ghana is the Ghanaian Cedi (GHS), denoted by the symbol "₵".
The Bank of Ghana oversees the issuance and management of the currency. Like the Nigerian
Naira, the Ghanaian Cedi is divided into subunits called pesewas, with 100 pesewas equaling 1
Cedi. However, similar to the Nigerian kobo, the pesewa has minimal value in everyday
transactions. Both Nigeria and Ghana have their respective currencies, the Nigerian Naira and
the Ghanaian Cedi, which are overseen by their central banks. The subunits, kobo and
pesewas, exist but have limited practical usage due to their minimal value.
13. The policy interest rate in Nigeria is currently 18%, which is lower than Ghana's rate of 28%.
The policy interest rate, also known as the central bank rate or benchmark interest rate, is set
by the respective central banks to influence borrowing costs and overall economic activity. A
higher interest rate indicates a tighter monetary policy, which aims to control inflation and
stabilize the economy. However, it also means that businesses and individuals may face higher
borrowing costs when seeking loans from banks or other financial institutions.The lower policy
interest rate in Nigeria suggests that the central bank is employing a relatively looser monetary
policy compared to Ghana. This can be seen as an attempt to stimulate economic growth by
making borrowing more affordable, encouraging investment, and stimulating consumer
spending. Lower interest rates can incentivize businesses to expand their operations, leading to
increased employment opportunities and economic activity. It can also make it more accessible
for individuals to borrow for various purposes such as home purchases, education, or starting a
business.On the other hand, the higher interest rate in Ghana implies a tighter monetary policy
stance. This higher rate could be a measure taken by the central bank to address inflationary
pressures or stabilize the currency. While a higher interest rate may help control inflation, it can
also dampen borrowing and economic growth, as businesses and individuals face higher
borrowing costs.
14. Both Nigeria and Ghana are members of regional agreements. Both Nigeria and Ghana are
members of regional agreements that promote cooperation and integration among countries in
their respective regions Nigeria, as the most populous country in Africa, is an active participant
in regional agreements. Nigeria is a member of the Economic Community of West African
States (ECOWAS). ECOWAS is a regional organization that aims to promote economic
integration, political stability, and social development among its member states in West Africa.
The organization fosters cooperation in various sectors such as trade, finance, agriculture, and
transportation, with the goal of enhancing regional economic growth and development.Ghana is
also a member of ECOWAS, aligning with its commitment to regional integration and
cooperation. Ghana actively participates in the organization's efforts to strengthen economic
ties, foster regional trade, and promote peace and stability within the West African
region.Moreover, both Nigeria and Ghana are part of the African Union (AU). The AU is a
continental organization that aims to promote unity, cooperation, and socio-economic
development among African nations. It serves as a platform for addressing regional challenges,
promoting good governance, and advancing economic integration within Africa.By participating
in these regional agreements, Nigeria and Ghana demonstrate their commitment to fostering
regional cooperation, promoting economic integration, and addressing common challenges
together with their neighboring countries. These agreements provide opportunities for
collaboration, trade facilitation, and harmonization of policies to promote regional development
and enhance the well-being of their citizens.
15. Nigeria's current account balance is a measure of its international trade and financial
transactions with the rest of the world. The current account balance represents the net
difference between a country's exports and imports of goods and services, as well as net
income from abroad and net transfers. In this case, Nigeria's current account balance is
reported to be 1.8% of its GDP, which is slightly lower than Ghana's reported balance of 2.0% of
its GDP. This suggests that Ghana may have a slightly higher surplus in its international trade,
indicating that Ghana's exports and income from abroad may exceed its imports and transfers
to a slightly greater extent than Nigeria.
16. Nigeria's main corporate tax rate refers to the tax rate imposed on the profits of corporations
operating in the country. Currently, Nigeria has a corporate tax rate of 30%, while Ghana has a
lower rate of 25%. The corporate tax rate is an important factor that affects the tax burden on
businesses and can influence investment decisions and economic competitiveness. With
Nigeria's higher corporate tax rate, Nigerian corporations face a relatively higher tax burden
compared to their Ghanaian counterparts. This difference in tax rates implies that Nigerian
corporations have a greater proportion of their profits allocated towards taxes, potentially
impacting their profitability and ability to reinvest in their operations.
17. Competitiveness rank is an assessment of a country's business environment and its ability
to attract investment, stimulate economic growth, and foster innovation. In this context, Nigeria's
competitiveness rank is reported to be 116, while Ghana's rank is slightly higher at 111. A lower
rank indicates a less favorable business environment and suggests that Nigeria may face
certain challenges or inefficiencies that impact its competitiveness compared to Ghana.
However, it's important to note that competitiveness rankings are based on various factors and
indicators, such as infrastructure, institutions, education, innovation, and macroeconomic
stability. Therefore, while Ghana may have a slightly more favorable business environment for
competitiveness according to the rankings, it does not necessarily mean that Nigeria lacks
competitiveness entirely, as other factors might be at play.
18. Nigeria's higher corruption perception ranking of 150, compared to Ghana's ranking of 72,
indicates that Nigeria is perceived to have more significant challenges in terms of corruption.
The corruption perception ranking is an assessment of the level of corruption within a country's
public sector and is based on surveys and expert opinions. A higher ranking suggests that
Nigeria is perceived to have a higher prevalence of corruption and faces greater obstacles in
combating corruption compared to Ghana. Corruption can have detrimental effects on a
country's economic development, governance, and overall societal well-being.
19. Nigeria's lower ease of doing business ranking of 131, compared to Ghana's ranking of
59.96, suggests that Ghana has a relatively more favorable business environment for ease of
conducting business activities. The ease of doing business ranking measures various factors
such as the ease of starting a business, obtaining permits, accessing credit, protecting
investors, and enforcing contracts. A lower ranking indicates that Nigeria faces more challenges
and regulatory hurdles in these areas, making it comparatively more difficult to start and operate
businesses. On the other hand, Ghana's higher ranking implies a more streamlined and efficient
business environment, which can attract investment and promote economic growth.
20. Nigeria's external debt, reported to be 8.7% of its GDP, is higher than Ghana's external
debt, which stands at 1.13% of its GDP. This indicates that Nigeria has a larger debt burden in
relation to its GDP compared to Ghana. External debt refers to the amount of money a country
owes to foreign lenders or governments. A higher external debt can pose challenges to a
country's economic stability and future repayment obligations. Nigeria's relatively higher external
debt suggests that it may face greater challenges in managing its debt levels and servicing its
debt obligations compared to Ghana.
21. Nigeria's lower Human Development Index (HDI) ranking of 0.35, compared to Ghana's
ranking of 0.63, implies that Ghana has achieved a higher level of human development in areas
such as education, healthcare, and living standards. The HDI is a composite index that takes
into account factors like life expectancy, education, and income levels to assess the overall well-
being and development of a country's population. A higher HDI ranking indicates that a country
has made more progress in improving the quality of life for its citizens. Nigeria's lower HDI
ranking suggests that it faces greater challenges in areas of human development compared to
Ghana, indicating disparities in education, healthcare access, and living conditions between the
two countries.
22.
23. Nigeria's malnutrition ranking of 103 is higher than Ghana's ranking of 67, indicating a
greater prevalence of malnutrition and associated health challenges in Nigeria. Malnutrition
refers to deficiencies, imbalances, or excesses in a person's intake of nutrients and can have
severe consequences on physical and cognitive development, immune system function, and
overall well-being. Nigeria's higher malnutrition ranking suggests that a larger proportion of its
population is affected by malnutrition, which can contribute to various health issues and hinder
socio-economic progress.
24. The percentage of the population living in extreme poverty is higher in Nigeria, with a rate of
43.3%, compared to Ghana's rate of 24.2%. This suggests that Nigeria faces a greater
challenge in addressing poverty and improving living conditions for its population. Extreme
poverty refers to individuals living below the international poverty line, which is set at a very low
income threshold. The higher percentage of the population living in extreme poverty in Nigeria
indicates a greater need for poverty alleviation measures, social safety nets, and inclusive
economic growth strategies.
25. Nigeria's life expectancy at birth is reported to be 53 years, while Ghana's is higher at 64
years. This difference indicates variations in healthcare access, quality, and overall well-being
between the two countries. Life expectancy at birth is an important indicator of a population's
health status and reflects factors such as healthcare infrastructure, disease prevalence,
nutrition, and socio-economic conditions. Ghana's higher life expectancy suggests that its
population generally enjoys better access to healthcare services and experiences healthier
living conditions compared to Nigeria.
26. The Gini coefficient measures income inequality within a country, with higher values
indicating greater income disparities. In this case, Nigeria's Gini coefficient is reported to be
35.1%, while Ghana's is higher at 43.43%. This suggests that income inequality is relatively
lower in Nigeria compared to Ghana. A lower Gini coefficient implies a more equitable
distribution of income, although it doesn't necessarily mean that absolute poverty levels are
lower. Nigeria's lower Gini coefficient suggests a relatively narrower income gap among its
population compared to Ghana.
27. Inward foreign direct investment (FDI) in Nigeria is reported to be 0.75% of its GDP, while
Ghana attracts a higher level of FDI relative to its economy, with a rate of 2.4%. This indicates
that Ghana receives a larger proportion of foreign investment compared to Nigeria. FDI is an
important driver of economic growth, job creation, technology transfer, and industrial
development. Ghana's higher FDI suggests that it is relatively more successful in attracting
foreign investors and creating an environment conducive to international business activities
compared to Nigeria.
28. Remittances refer to financial transfers made by individuals working and residing abroad to
their home countries. In this case, Nigeria's remittances are reported to be 4.42% of its GDP,
while Ghana receives a larger proportion of remittances, with a rate of 6.13%. This indicates
that Ghana receives a higher percentage of financial transfers from individuals living abroad
compared to Nigeria. Remittances play a significant role in supporting the economies of
recipient countries, contributing to household incomes, and stimulating consumption and
investment.
29. Nigeria's aid to GDP ratio is reported to be 0.2%, while Ghana's ratio is higher at 5.2%. This
implies that Ghana relies more heavily on external aid as a percentage of its GDP compared to
Nigeria. Aid refers to financial and technical assistance provided by governments, organizations,
or individuals to support the development efforts of recipient countries. Ghana's higher aid to
GDP ratio suggests a greater reliance on external assistance to fund development programs,
address social challenges, and promote economic growth.

REFERENCES

2. World Bank. (2021). World Development Indicators 2021. Retrieved from

https://databank.worldbank.org/source/world-development-indicators
3. International Monetary Fund. (2021). World Economic Outlook Database. Retrieved from
https://www.imf.org/en/Publications/WEO/weo-database/2021/October
4. Central Bank of Nigeria. (2023). Monetary Policy. Retrieved from
https://www.cbn.gov.ng/monetary/mpol/Bank of Ghana. (2023). Monetary Policy. Retrieved from
https://www.bog.gov.gh/monetary-policy/
5. United Nations Development Programme. (2021). Human Development Indices and
Indicators 2020 Statistical Update. Retrieved from http://hdr.undp.org/en/indicators/137506