Ghana sits on the Atlantic Ocean and borders Togo, Cote d’Ivoire, and Burkina Faso. It has a population of about 29.6 million (2018). Ghana’s economy continued to expand in 2019 as the first quarter gross domestic product (GDP) growth was estimated at 6.7%, compared with 5.4% in the same period the previous year. Non-oil growth was also strong at 6.0%. The relatively high quarterly growth was driven by a strong recovery in the services sector which grew by 7.2% compared with 1.2% in 2018.
The government has continued with its fiscal consolidation efforts in 2019. Fiscal performance for the first half of 2019 showed an overall budget deficit (on cash basis) of 3.3% of GDP higher than the target of 2.9% of GDP. This is because the revenue shortfall of 1.6% of GDP was higher than expenditure cuts of 1% of GDP.
Private sector credit grew stronger, supported largely by the well-capitalized banking sector. Inflation continued to be in single digits in the first six months of 2019; gradually rising from 9% in January to 9.5% in April 2019 but reduced to 9.1% in June 2019 mainly driven by low food inflation.
Ghana’s account in the first half of 2019 was estimated at a surplus of 0.1% of GDP supported by favorable trade conditions of Ghana’s three main export commodities—oil, gold and cocoa, resulting in a trade surplus of 2.8% of GDP. The current account surplus, combined with significant inflows to the capital and financial accounts, resulted in an overall balance of payments surplus equivalent to 1.9% of GDP. With the issuance of the US$3 billion Eurobond in March 2019, the international reserves significantly improved in 2019 with Gross International Reserves (GIR) of US$8.6 billion (equivalent to 4.3 months of import cover) at the end of June 2019.
Economic growth is projected to increase to 7.6%. Non-oil growth is expected to accelerate to 6% as the government’s new policies in the agriculture sector and the promotion of agribusiness begin to take effect. Inflation is expected to remain within the Central Bank’s target range of 6-10% over the medium term.
Source: http://www.worldbank.org/en/country/ghana/overview
Dubai has always been a highly targeted market for Ghana and other West African countries. Trade between both regions has been on the increase over the years. High potential sectors include:
- Trade & Logistics
- Healthcare
- Tourism
- Food
- Finance
- Real Estate & Construction
- Mining
Non-oil trade between Dubai and Ghana has increased steadily in recent years to reach over US$ 1.2 billion in 2018, while the number of Ghanaian companies registered with Dubai Chamber continues to climb. Currently, there are more than 20,000 African companies registered with Dubai Chamber which reflects Dubai’s established reputation as a preferred hub for African and for that matter Ghanaian businesses and a gateway to markets in the Middle East. While 100% foreign ownership, world-class infrastructure and an ideal geographic position are just some of the main benefits which continue to attract companies from around the world to Dubai, there are so many other important factors that make the emirate a top choice for foreign investors and businesses. Businesses are leveraging Dubai as a strategic gateway which provides them with easy access to growth markets across the GCC, Middle East, Africa and Asia.