Ghana | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Republic of Ghana
Records
63
Source
Ghana | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.12294815
1971 0.10724418
1972 0.12865036
1973 0.10491566
1974 0.58165868
1975 0.20867706
1976 0.1718203
1977 0.1948377
1978 0.2013655
1979 0.80937036
1980 2.94746149
1981 1.80635137
1982 1.14819521
1983 1.32525799
1984 0.87963526
1985 0.69846287
1986 0.61222134
1987 1.1010018
1988 1.03826847
1989 0.80076213
1990 0.76824578
1991 1.73891234
1992 1.5665172
1993 2.53975162
1994 3.9943786
1995 1.22819737
1996 2.63116104
1997 1.80511321
1998 1.72216238
1999 1.31546159
2000 3.03211312
2001 2.67339484
2002 2.9501967
2003 1.21634094
2004 0.94587345
2005 1.66845379
2006 2.1291256
2007 2.15660916
2008 2.07837946
2009 2.93652372
2010 3.94880911
2011 5.48815061
2012 4.8183614
2013 2.95304966
2014 3.16234384
2015 2.35816739
2016 1.22418164
2017 1.78436554
2018 1.72215925
2019 2.05143894
2020 2.23781041
2021 5.16504971
2022

Ghana | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Republic of Ghana
Records
63
Source