Why Ghana’s Economy Is Finally Looking Up

Why Ghana’s Economy Is Finally Looking Up

Written by Mark Anderson | From The Guardian

Ghana’s economy is showing new signs of life after a turbulent year in which its gross domestic product plummeted and the value of its currency almost halved.

Investor confidence has been boosted in recent months by a stabilisation of Ghana’s national currency, the cedi, and ongoing talks with the International Monetary Fund (IMF) about a loan package, according to Ekwow Spio-Garbrah, the trade minister.

Ghana, which posted an average of 6% annual GDP growth over the past six years, has been dubbed “a model for democracy” by the US president Barack Obama. But heavy borrowing and a rapidly depreciating currency have sparked concerns that the economy could tumble as it gears up for a spike in oil production.

“Ghana’s economy used to be red hot – it’s now probably orange hot,” said Spio-Garbrah. “The economy is already rebounding through the stabilisation of the cedi, which had depreciated quite a bit in the early part of the year, but within the last one month it has become stable and has been gaining strength against the dollar, against the pound.”

An overreliance on imports has also contributed to the country’s economic woes, according to President John Mahama. “Ghana imports almost everything our population consumes, from televisions to toothpicks. We even import goods and products that we are more than capable of producing locally, like rice, sugar, wheat, poultry and flour.”

Read more at The Guardian