36_G15_Spotlight_Ghana

Global Issue 15

Spotlight Ghana e limping lion The world’s second largest producer of cocoa – and rich in natural resources, including gold and oil – Ghana was destined to lead Africa’s fastest growing ‘lion’ economies over the next ten years. But falling gold prices and falling tax receipts have set back economic growth Anver Versi For the past 15 years, the management of Ghana’s economy has been held up – by multilateral organisations such as the World Bank, among others – as the exemplary model for other developing countries to follow. The country has enjoyed political stability, good macroeconomic management, a steady annual growth in the fi ve per cent range and a diversifi ed economy based on gold mining, manufacturing and cocoa – Ghana is the world’s second largest producer. It is now also an important oil producer and has the potential to become the third largest oil producer in Africa. Indeed, by 2010, when the country’s fi rst oil began to fl ow from the Jubilee fi eld and the price of gold nudged the US$2,000 per ounce mark, a recalculation of the country’s GDP, based on more relevant data, raised GDP by 60 per cent. Growth was estimated at around 14 per cent and Ghana entered the ranks of middle-income countries. It seemed that Ghana was destined to lead the pack of the ‘African lions’ – a dozen or so fast growing countries – over the next decade at least. But during the last few months, the country's serene progress towards its medium term annual growth target of eight per cent has suffered several setbacks and the ‘black swan’, in the form of a catastrophic 36 l www.global -br ief ing.org thi rd quar ter 2013 global


Global Issue 15
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