The Widening GDP-GNI Gap: Is Ghana’s Economy Leaking More Than It’s Earning?

Ghana‘s per capita Gross Domestic Product (GDP) and Gross National Income (GNI) have both shown significant growth over the past five years. However, the latest data from the Ghana Statistical Service (GSS) reveals a persistent gap between the two indicators, raising concerns about income outflows from the country.

According to the report, Ghana’s per capita GDP rose from GH₵11,775 in 2019 to GH₵35,632 in 2024, while per capita GNI increased from GH₵11,094 to GH₵34,344 over the same period. While both indicators have seen a consistent upward trend, the gap between GDP and GNI has widened, indicating that a significant portion of Ghana’s earnings is flowing out of the economy.

Understanding the GDP-GNI Gap

GDP measures the total value of goods and services produced within the country, while GNI accounts for all income earned by Ghanaian citizens and businesses, including remittances from abroad, minus income paid to foreign investors.

The data shows that the difference between GDP and GNI per capita has grown from GH₵681 in 2019 to GH₵1,288 in 2024, suggesting that foreign ownership of businesses, profit repatriation, and debt servicing could be responsible for the income leakage.

A Growing Concern for Economic Sustainability

The widening gap is particularly evident from 2022 to 2024, where the divergence increased sharply. In 2023, per capita GDP stood at GH₵28,317, while per capita GNI was GH₵27,585, reflecting a difference of GH₵732. By 2024, this difference had almost doubled to GH₵1,288.

This trend suggests that while Ghana’s economy is expanding, a significant share of the wealth generated is not staying within the country. The increase in foreign direct investment (FDI) and external debt payments could be key drivers of this income outflow.