Exports and fixed investment are expected to see steady recoveries in 2021 with both contributing 0.8% to real Gross Domestic Product (GDP) growth, the 4th Quarter 2021 Country Report by Fitch Solutions.
“Elevated commodity prices on the back of a strong rebound in global growth will lead to a recovery in profits in Ghana’s key export industries. In particular, gold (36.0% of merchandise exports in 2020) will be an outperformer, and our mining team expects average annual production to rise by 6.0% in 2021,” it stated.
These trends it said will be accompanied by rising business investment in the Ghanaian mining sector by firms such as AngloGold Ashanti, Galiano Gold and Newmont Gold Corporation.
However, exports will fall as a proportion of GDP over the next several years as Ghana’s economy becomes less driven by commodity exports, but secondary and tertiary industry sectors develop.
The gold sector will nevertheless continue to drive growth in exports along with oil and cocoa, but rising domestic consumption and large investment flows will reduce the significance of exports in the years to come.
“We expect that imports will decline as a share of GDP over our forecast period, reaching 17.3% in 2030, compared to 35.9% in 2021. Rising consumption of locally manufactured goods and the completion of major infrastructure projects will contribute to reducing imports as a percentage of total GDP in the coming years”, it pointed out.
Other sectors will also see an uptick in investment, facilitated by the easing of Covid-19 restrictions and encouraged by the country’s relatively attractive operating environment.
Ghana scored 45.7 in Fitch Solutions Operational Risk Index, well above the regional average of 35.0. The higher the score the lower the risk.
Automotive firms to make further investments
Also, automotive companies, such as Peugeot, have indicated that they will make further investments in the coming months, while the local construction sector will benefit from ongoing infrastructure development.
For instance, the report said local company GHACEM is investing in additional capacity, including a new cement plant in Ghana’s second city, Kumasi
Gold production falls 12.1% to 4.023m ounces in 2020
The total volume of gold produced in Ghana declined by about 554,000 ounces (12.1%) to 4.023 million ounces in 2020 despite the windfall in gold prices, the 2020 Ghana Chamber of Mines Report stated.
The 12.1% decline in production is the highest year-on-year decline since 2004.
However, Ghana continued to hold on to its position as the largest producer of gold in Africa and the sixth in the world even though the country recorded a decline in output by 12.1%.
- Paa Kwesi Schandorf: 5 things Otto Addo must fix after our game with South Korea
- Ashanti NSS boss insults nurse for suggesting a change in prescription
- Government still wasteful but imposes austerity on Ghanaians – Joe Jackson
- Fire destroys shops at Kantamanto market
- That is not my style – Ashanti Regional NSS boss apologises for insulting nurses
- Fentuo Tahiru Fentuo: The day Kudus shone, in Jordan’s shadow
- Ex-Black Stars midfielder Sulley Muntari retires, age 38
- ‘Mr and Mrs Adeleke’: Fans gush over photos of Chioma with Davido and her in-laws during 1st public appearance
- World Bank concerned about Ghana becoming more reliant on natural resource extraction
- Petrol, diesel prices to go down by 10% – IES
- Motorists, residents outraged over poor state of Olebu roads
- Government urged to increase school feeding grant per child from GH₵ 1.00 to GH₵5.00
- Black Stars Playbook: Ghana 3-2 South Korea; why Ghana struggled in the wide areas
- 2022 World Cup: Koulibaly powers Senegal to last 16 after win over Ecuador
- NSS summons Ashanti Region boss for investigation
- Play Soccer Ghana commemorates Global Peace Games 2022
- State Prosecutors call Manasseh Azure Awuni as first witness in trial of former PPA boss
- Why NGOs should embrace digitisation of payments and collections
- ‘You’ll see, more is coming from my boy’ – Andre Ayew on Kudus’ future
- Amassing wealth as a politician is wickedness – Executive Director of CNIR
- Qatar 2022: You risk going to jail if you resell match tickets – Sports Minister warns Ghana supporters
- Kantamanto market fire: we need stakeholder engagement to provide affordable microinsurance – Insurance Brokers Association
- South Sudan urged to prosecute top officials linked to rape
- Sack Ashanti Region NSS boss; he is unfit to be director in public service – GRNMA tells government
- Cardinal Baawobr was a champion for the poor – Wa Catholic Diocese