Economy
From The Report: Ghana 2013
View in Online Reader

Outperformance remains the key feature of Ghana’s economy, seven years after the discovery of oil prompted new optimism in the country, which was then celebrating the golden jubilee of its independence. In real terms, GDP grew by 7.9% in 2012. This follows revised GDP growth of 15% in 2011, which was largely driven by the start of commercial oil production at the Jubilee field. Ghana is also the world’s second-largest exporter of cocoa beans and products, which accounted for 20.9% of export revenues in 2012. With growth in 2013 forecast to remain at a little under 8%, its oilfields set to expand and its gas infrastructure rapidly developing, Ghana’s future looks bright. Nevertheless, the country will need to tackle a number of challenges, notably in improving its infrastructure and dealing with poverty, as well as budgetary pressures that the government must face to enable it to achieve its medium-term goals of building stability and prosperity.

This chapter contains a viewpoint from Kwesi Bekoe Amissah-Arthur, Vice-President of Ghana, and an interview with Mawuena Trebarh, CEO, Ghana Investment Promotion Centre.

Articles from this Chapter

Overview

More to come: Resource revenues spur growth and infrastructure investment
OBG
plus

Outperformance remains the key feature of Ghana’s economy, seven years after the discovery of oil prompted new optimism in the country, which was then celebrating the golden jubilee of its independence. But the GDP growth experienced in 2012 and in the early part of 2013 has been accompanied by an expansion in government borrowing and a worrying rise in fiscal deficits as the country attempts to meet its citizens’ expectations and fund the infrastructure improvements that will enable it to…

Viewpoint

Kwesi Bekoe Amissah-Arthur, Vice-President of Ghana, on the insurance industry as an effective tool for mobilisation
OBG
plus

The insurance industry is a very critical sector in the nation’s socio-economic development, and therefore pledges the government’s support to the insurance industry in particular and the financial services sector as a whole. Conservative figures put the rate of insurance penetration in Ghana at about 1%, compared to South Africa with a penetration of 14.8%, Namibia with 7.3% and Kenya with 2.8%, even though on the whole, the continent’s insurance market contributed less than 2% of…

Analysis

Building stability: Recent efforts aim to shore up fiscal resources
OBG
plus

In 2012 Ghana found itself in the spotlight for having among the highest GDP growth rates in the world in 2011, thanks to the impact of oil revenues and the rebasing of the economy. The GDP figures released for 2013 show that growth is continuing at a robust rate – at just under 8% – but headline expansion has not resolved the twin current account and budget deficits of 12%, which will necessitate a more stringent fiscal policy in the years to come. ACHILLES HEEL: Fiscal governance has…

Analysis

Think small: New initiatives aim to stimulate SME growth
OBG
plus

As is the case in many emerging markets, small and medium-sized enterprises (SMEs) play a crucial role in Ghana’s economy, driving both activity and employment. Still, their impact is lower than it could be due to a challenging operating environment. IMPACT: The full impact of SMEs on Ghana’s economy is difficult to measure accurately as many small enterprises form part of the informal sector of the economy. However, a study by the University of Ghana published in 2010 – the same year…