Ghana Economy

While the headlines on Ghana’s 2015 budget focus on the short-term impacts of fiscal tightening, the proposed changes should have a positive bearing on the overall economy over time. 

Cocoa production in Ghana is expected to receive a fillip in the current crop season with a substantial price hike for farmers and a new funding deal likely to encourage growth at a time when the global climate for cocoa remains uncertain and Ghana's output has dropped.

Having been among the continent’s fastest-growing economies on the back of an oil-fuelled boom, Ghana has cut its growth target for this year and revised its forecast for inflation and budget deficit upwards as a result of slowing commodity revenues and high current spending.

Over recent years, Ghana has been one of the world’s fastest-growing economies, on the back of the emergence of its oil industry and underpinned by its political stability and the strength of its other commodity sectors. While GDP growth is expected to slow this year, the Ghana Investment Promotion Centre (GIPC) is targeting a 20% increase in foreign direct investment (FDI), following a dip in 2013.

Ghana enters 2014 still ranking as one of the best-performing economies in the region – and by some measures, the world. While growth may have trimmed a little in 2013 due to international factors, it remains comparatively high, driven by capital flows stimulated largely by the oil sector.

A number of new initiatives, including educational programmes and a specialised support fund for small and medium-sized enterprises (SMEs), have been established to promote the growth and diversification of small businesses in Ghana.