Skip to main content

Ghana’s economy to grow by 13.4% - World Bank

By Kofi AHOVI

The World Bank has projected that Ghana’s economy would grow by 13.4% in 2011 before dropping to 10% in 2012 making it the fastest growing economy in Sub-Saharan Africa.

This figure is significantly higher than the 12.3% projected by government of Ghana itself in its 2011 budget statement.

Launching the bank's global economic prospects report via a video-conference, Andrew Burns, Manager of Global Macroeconomics in the World Bank's Prospects Group, said Ghana was still in position to register strong economic growth without the oil sector, particularly from construction services as large infrastructure projects were being undertaken.

He said Ghana's economy benefited from a strong rebound of both volumes and prices of gold and cocoa, increase in tourism, and higher household and government spending last year, with economic growth rate estimated at 6.6% in 2010.

However, Burns cautioned that if the inflows from the oil sector in Ghana were not managed prudently, they could distort the incentive structure for agricultural exports.

He said developing countries had recovered so fast from the global economic downturn and were now pulling along the high income countries, which was unusual.

The report noted that Africa appeared to have sustained growth and transformation in 2010 and the private sector was increasingly attracting investment into their economies, adding "Africa appears to be poised for sustained growth due to private capital flows."

The World Bank said most developing countries had in addition, recovered from the world food crisis and had projected a steady global growth for developing countries.

"The world economy is moving from a post-crisis bounce-back phase of the recovery to a slower but solid growth in 2011 and next year with developing countries contributing almost half of the global growth," it said.

It estimated that global GDP, which had expanded by 3.9% in 2010, would slow to 3.3% in 2011, before climbing back to 3.6% in 2012.

The bank revealed that developing countries were expected to grow by about 7% in 2010, 6% in 2011, and 6.1% in 2012.

It said the growth rate in developing countries would continue to outstrip growth in high-income countries which were projected to grow at 2.8% in 2010, 2.4% in 2011 and 2.7% in 2012.

The bank said strong developing-country domestic demand growth was leading the world economy, yet persistent financial problems in some high-income countries were still a threat to economic growth and required urgent policy actions.

Low income countries were projected to be strengthened more with a growth rate of 6.5% in both 2011 and 2012, since their countries saw trade gains in 2010, and overall, their GDP rose by 5.3% in 2010.

According to Burns, the sharp rise in global food prices was having a mixed impact.

He said in many economies, dollar depreciation, improved local conditions, and rising prices for goods and services indicated that the real price of food had not risen as much as the dollar price of internationally traded food commodities.

Comments

Popular posts from this blog

UK-Ghana Trade & Investment Summit: Trade Resource Centre to help businesses maximise UK-Ghana trade opportunities

 In a significant boost to UK-Ghana trade and investment relations, the UK-Ghana Chamber of Commerce (UKGCC), in partnership with the UK-Ghana Jobs and Economic Transformation (JET) Programme, has launched the UK-Ghana Trade Resource Centre, a practical market-access platform designed to help businesses identify opportunities, navigate export requirements and build commercial partnerships between Ghana and the United Kingdom. The UK and Ghana enjoy strong trade relations, with total bilateral trade reaching approximately £1.6 billion in the year to Q1 2026. Yet, despite this progress, significant untapped opportunities remain for businesses in both countries. The Trade Resource Centre has been established to help bridge information gaps, connect businesses with the right partners, and support firms to take greater advantage of opportunities under the UK-Ghana Trade Partnership Agreement. The launch formed one of the major outcomes of the UK-Ghana Trade & Investment Summit 2026,...

Ghana Home Loans

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican...

NESCAFÉ Launches Real Vibes Text & Win Promo to Reward Coffee Consumers Across Ghana

 NESCAFÉ has launched the Real Vibes Text & Win Promo, an exciting consumer promotion designed to reward loyal coffee lovers and bring the brand’s My Coffee, My Vibe experience even closer to consumers across the country. Running from September to December, the promotion gives consumers the opportunity to enjoy their favourite NESCAFÉ coffee while standing a chance to win exciting prizes, including phones, motorcycles, airtime and the ultimate grand prize—an electric SUV. Speaking at the launch, Lily Ntim, Category Development Manager for NESCAFÉ, said the promotion reflects NESCAFÉ’s commitment to creating, rewarding and memorable experiences for consumers. “Today, we are excited to introduce the NESCAFÉ Real Vibes Text & Win Promo, a campaign designed to bring the My Coffee, My Vibe experience even closer to our consumers,” she said. She added that the campaign is not only about prizes, but also about celebrating the everyday moments consumers enjoy with their coffee. “T...