Ghana WT/TPR/S/194/Rev.1 
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I. ECONOMIC ENVIRONMENT 
(1) MAJOR FEATURES OF THE ECONOMY  
1. Ghana is located in West Africa a nd covers a total land area of 238,537 km2 of which some 
57% is arable.  It is bordered by Côte-d'Ivoire to the West, Burkina Faso to the North, Togo to the 
East, and the Gulf of Guinea to the South.  In 2006, Ghana had a population of some 22.5 million;  
annual population growth is estimated at 1.9%.1  Ghana's population is quite young;  in 2005, 39% of 
the population was 14 years old or younger. 
2. Ghana has made noticeable achievements in povert y reduction.  Most social indicators show a 
marked improvement between 1997 and 2003, the y ear of the most recent nationwide survey 
(Table I.1).  However, poverty remains wide-sprea d, particularly among women and in rural areas, 
and an estimated 50% of the population lives on und er US$1 a day.  Per capita income increased to 
some US$450 in 2005 from US$320 in 2000 supported by GDP growth rates that continuously exceeded population growth rates.  In UNDP's 2006 Human Development Index, Ghana ranks 
136
th out of 177 countries. 
Table I.1 
Key social indicators, 1997 and 2003 
(Per cent) 
2003  1997 
Total Rural Urban 
Adult literacy  48.5 53.4 39.8 69.6 
Youth literacy 64. 1 68.7 56.4 81.7 
Access to primary education 81.2 85.4 81.0 93.2 
Access to secondary education 19.9 43.3 28.8 62.6 
Access to basic health services 37.2 57.6 42.3 78.5 
Access to water 82.1 94.0 91.0 97.6 
Safe sanitation 45.8 55.0 33.1 80.9 
Source:  Ghana Statistical  Service (2003), 2003 Core Welfare Indicators Questionnaire Survey . 
3. The agriculture sector is the backbone of Ghan a's economy;  it accounts for more than 40% of 
merchandise exports (with cocoa beans the main ca sh crop), some 50% of employment, and nearly 
38% of GDP.  Mining contributes less than 5% to GD P, but gold generally accounts for about 30% of 
exports.  Manufacturing, which mainly centres around wood and food processing, contributes less 
than 9% to GDP, while services sector (excluding construction) contributes nearly 29%.  Ghana's ratio 
of foreign trade (exports plus imports of goods and services) to GDP increased from 83% in 2000 to 
98% in 2006.  Although Ghana's economy has performed solidly during the period under review, some important challenges remain.  Among these are:  low productivity, high costs of and difficult access to financing, underdeveloped transport infrast ructure, unclear land ownership, frequent power 
and water cuts, and low human capital development.
2 
4. The Bank of Ghana is responsible for formulati ng monetary policy.  It follows an inflation-
targeting policy, and the current target rate is be tween 7% and 9%.  Under the Bank of Ghana Act of 
2002, the governing body of the Bank is the Board of Directors, consisting of the Governor as 
chairman, two deputy governors, and nine directors.   One of the directors is a representative of the 
Ministry of Finance and Economic Planning.  Member s of the Board are appointed by the President of 
Ghana in consultation with the Council of State.  The governor and the deputy governors are appointed for a period of four years with the possibility of reappointment. 
                                                     
 
1 World Bank (2007). 
2 Association of Ghana Industries (2007). WT/TPR/S/194/Rev.1 Trade Policy Review 
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5. Ghana's national currency is the cedi.  In July  2007, the Bank of Ghana re-denominated the 
currency by setting 10,000 cedis to 1 new Ghana cedi.3  New notes and coins were issued and used 
concurrently with existing notes and coins over a pe riod of six months.  Ghana maintains a managed 
floating exchange regime with no pre-announced path for the exchange rate.  It has accepted Article 
VIII of the IMF Agreement.  The Bank of Ghana intervenes to smooth short-term exchange rate 
fluctuations.  It has also targeted a level of interna tional reserves equivalent to at least three months of 
imports of goods and services, a criterion to qualify for membership in the West African Monetary 
Zone.  Open market operations, in particular reve rse repos, are the Bank's main policy instrument.  
(2) RECENT ECONOMIC DEVELOPMENTS  
6. Ghana's main macroeconomic indicators have s hown marked improvement since its last TPR 
in 2001.  Average annual GDP growth was 5. 1% between 2000 and 2006, up from 4.4% between 
1995 and 1999.  Real GDP growth has picked up c ontinuously, attaining 5.8% in 2004 and 2005, and 
6.2% in 2006, the highest rate since the early 1990s (Table I.2).  The expansion was driven largely by 
significant growth in the agriculture sector, which in creased its contribution to GDP to nearly 38% in 
2006, supported by productivity incr eases and favourable international cocoa prices.   Sectoral GDP 
shares have remained largely constant for indust ry and most services subsectors.  Although labour 
market statistics in Ghana are scant, available data  on advertised job vacancies indicate that rising 
GDP growth has translated into growing labour  demand, particularly in the services sector.4 
Table I.2 
Selected economic indicators, 1999-06 
 1999 2000 2001 2002 2003 2004 2005 2006 
Miscellaneous          
Real GDP growth (%) 4.4 3.7 4.2 4.5 5.2 5.8 5.8 6.2 
Nominal GDP (US$ billion) 7,70 9.9 4,977.6 5,30 9.2 6,159.6 7,62 4.2 8,869.3 10, 694.0 12,248.8 
Inflation (CPI, %) 13.8 40.5 21.3 15.2 23.6 11.8 14.8 10.9 
Bank of Ghana prime rate (%) 27.0 27.0 27.0 24.5 21.5 18.5 15.5 12.5  
Cedi/US$ 3,535.1 7,047.7 7,321.9 8,438.8 8,852.3 9,051.3 9,130.8 9,179.8 
Cedi/€ 3,577.3 6,343.5 6,500.5 8,511.6 10,986.3 12,309.0 10,814.9 11,574 
Commodity prices         
Cocoa (US$/tonne) 1,434.0 1,094.0 1,021.0 1,260.0 1,949.5 1,586.9 1,524.6 1,512.5 
Gold (US$/fine ounce) 278.7 280.4 271.6 309.5 364.5 409.9 445.2 604.6 
Oil, IPE Brent Crude (US$/barrel) 18.6 28.4 25.0 25.0 28.4 37.8 55.4 66.1 
Nominal GDP (GC billion) 20,580.0 27,153.0 38,071.0 48,862.0 66,158.0 79,803.7 97,018.0 114,903.0 
Exports of goods and non-factor services  2,473.1 2,440.6 2,398.8 2,570.1 3,192.4 3,486.9 4,211.1 4,948.5 
Imports of goods and non-factor services  3,925.3 3,350.2 3,574.5 3,327.9 4,132.6 5,355.7 6,295.4 8.286.5 
Share of GDP at current prices (%) 
Agriculture 35.8 35.3 35.2 34.8 36.5 37.9 37.5 37.6 
Agriculture and livestock 22.6 22.0 22.3 22.2 22.5 22.1 21.4 21.3 
Cocoa production and marketing 4.7 4.8 4.6 4.3 5.8 7.6 8.1 8.5 
Forestry and logging 3.6 3.9 3.9 3.9 4.0 4.0 3.9 3.9 
Fishing 4.8 4.6 4.5 4.4 4.3 4.2 4.0 4.0 
Mining and quarrying 5.1 5.0 4.7 4.7 4.7 4.6 4.6 4.6 
Manufacturing 9.0 9.0 9.0 8.9 9.0 8.7 8.7 8.7 
Electricity and water 2.7 2.7 2.7 2.7 2.7 2.6 2.7 2.7 
Services 28.4 28.8 29.2 29.8 29.1 28.6 28.9 28.8 
Transport, storage, and communication 4.2 4.3 4.4 4.4 4.4 4.4 4.5 4.5 
Wholesale and retail trade, restaurants 
and hotels 6.7 6.7 6.8 6.8 6.9 6.8 7.1 7.1 
Table I.2 (cont'd) 
                                                      
3 Unless otherwise indicated, all figures in this Report that refer to the period before 2006 are indicated 
in old cedis (GC), while figures referring to 2007 are indicated in new Ghana cedis (GHC).  
4 Bank of Ghana (2007c). Ghana WT/TPR/S/194/Rev.1 
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 1999 2000 2001 2002 2003 2004 2005 2006 
Finance, insurance, real estate, and 
business services 4.2 4.3 4.3 5.2 4.3 4.3 4.3 4.3 
Government services 9.9 10.1 10.2 10.0 10.0 9.7 9.6 9.5 
Construction 8.6 8.7 8.8 8.8 8.9 8.8 9.1 9.3 
Community, social, and personal 
services 2.5 2.6 2.6 2.6 2.6 2.6 2.5 2.5 
Private non-profit services 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 
Indirect taxes 10.4 10.5 10.4 10.3 9.2 8.7 8.5 8.4 
External sector (US$ million, unless otherwise indicated) 
Gross international reserves (end period) 420.1 233.4 364.8 640.4 1,425.6 1,732.4 1,894.8 2,266.7 
Months of imports of goods and services 1.2 0.8 1.2 2.2 3.9 3.8 3.5 2.7 
External debt (US$ million) 5,960.0 6,062.0 6, 376.8 6,585.0 8, 035.0 6,368.0 6, 692.0 2,773.0 
Monetary aggregates growth (%) 
Reserve money  35.8 52.6 31.3 42.6 33.4 18.8 11.2 32.3 
Broad money (M2+) 23.9 46.5 41.4 50.0 37.8 26.0 14.1 38.8 
Government finance (% of GDP) 
Total revenue 16.5 17.7 18.1 18.0 20.8 23.8 24.1 .. 
Grants 1.5 2.1 6.9 3.1 4.7 6.2 4.9 .. 
Total expenditure 24.1 27.7 32.1 26.1 29.0 32.9 30.2 .. 
Overall balance (including grants) -6.5  -9.7 -9.0 -6.8 2.4 -3.2 -2.4 .. 
.. Not available. 
Source:  Bank of Ghana (2005), Annual Report ; and Bank of Ghana, online information. Viewed at: 
 http://www.bog.gov.gh/privateconte nt/File/Research/StatBulOct06stBulGDPcurrOct06.xls [16 May 2007].  
7. Since 2000, inflation rates have shown a declini ng trend, albeit still at two-digit levels.  As 
measured by changes in the consumer price index, inflation was 10.9% in 2006 and 10.2% in the first 
quarter of 2007, down from 24% in 2003 and over  40% in 2000.  Interest rates have fallen 
considerably during the review period:  the Bank of Ghana's prime rate fell from 27% in 2000 to 
12.5% in 2007;  this decrease led to a significan t reduction of lending rates, which ranged between 
15.5% and 33.5% in September 2007. 
8. Since 2000, Ghana's fiscal situation has improved significantly.  Government revenue 
increased from under 18% of GDP in 2000 to over 22 % in 2006, while expend iture oscillated between 
27% and 33%.  Grants from interna tional donors were instrumental in keeping fiscal deficits at bay 
(Table I.2).  Subsidization of petroleum pr oducts accounts for a large share of government 
expenditure.  Duties on imports (including tariffs, VAT, and excise duties) make up for more than 
55% of total fiscal revenue.  The Government's main fiscal policy objective is to reduce domestic debt 
to a sustainable level and to increase reliance on domestic financing. 
9. The cedi has depreciated cons tantly against the U.S. dollar since 2000, although the 
depreciation has slowed since 2003.  Against the euro, the cedi depreciated between 2000 and 2004 
and in 2006, but appreciated in 2005.  As at Sept ember 2007, the nominal exchange rate for the new 
Ghana cedi was US$1.08 and €0.8.  A new Foreign Ex change Act entered into force in December 
2006, bringing with it a shift away from tight exchange  controls (Table I.3).  In particular, the Act 
allows residents to hold foreign currency account s.  However, the repatriation and conversion 
requirement for certain export proceeds h as remained in place (Chapter III(3)(i)). 
10. Ghana's current account has generally been in de ficit since 2001;  deficits in merchandise and 
service trade accounts have not been offset by tran sfer surpluses (Table I.4).  Merchandise exports 
have increased strongly, but their growth was outpaced  by rising imports in most years, leading to a 
widening trade deficit.  In 2006, the trade deficit amounted to nearly US$2.8 billion, equivalent to 
22.7% of GDP. WT/TPR/S/194/Rev.1 Trade Policy Review 
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Table I.3 
Foreign exchange regulations, 2007  
Item Arrangements 
Exports and export proceeds 
(goods and services)  Exporters are required to collect a nd repatriate to their local banks the proceeds from their exports in 
full within 60 days of shipment. Under the Minerals and Mining Act 2006, the Bank of Ghana may permit the owner of a mining 
lease (for specified purposes) to retain in an account a portion of the foreign exchange earned. 
Cocoa export proceeds must be surr endered to the Bank of Ghana. 
Banks must submit reports of all e xport receipts to the Bank of Ghana. 
Payments for imports of goods 
and services, and current 
transfers  For all payments, customers are required to su bmit any required documentation for the underlying 
transaction and complete applicable forms provided by banks for monitoring purposes.  
There are no restrictions on payment of amortization of loans or depreciation of direct investments. 
Banks must submit to the Bank of Ghana reports of all payments transactions. 
Foreign exchange accounts  Residents are permitted to maintain foreign excha nge accounts, which can be credited with foreign 
exchange earnings not converted into cedi balan ces.  Generally, balances on these accounts cannot 
be freely transferred without the necessary supporting documentation to back the underlying 
transaction.  
Residents are allowed to transf er up to US$10,000 per annum from these accounts to meet payment 
obligations abroad, without documentation.  Import payments are also allowed through direct tr ansfer from this account, for up to US$25,000 per 
transaction, without initial documentation.  
Foreign currency accounts  Residents and non-residents are allowed to maintain foreign currency accounts, which may be 
credited with transfers in foreign currency from  abroad or other foreign currency accounts.  
Balances are freely transferable.  They may be de bited for payments, for transfers to other foreign 
accounts, and for purchases of external currencies. 
Exports and imports of banknotes  Travellers may carry abroad or re-import up to the equivalent of GC 500.00.  
Residents and non-residents trave lling abroad are permitted to carry up to the equivalent of 
US$10,000.  Authorized dealer banks may freely export foreign currency. 
Source:  Foreign Exchange Act (Act 723), 2006.  
Table I.4 
Balance of payments, 2000-06  
(US$ million unless otherwise indicated) 
 2000 2001 2002 2003 2004 2005 2006a 
Merchandise exports (f.o.b.) 1,936.33 1,867.11 2,015.19 2,562.39 2,704.46 2,802.21 3,735.08 
Merchandise imports (f.o.b.) -2,766.56 -2,968.51 -2,707.02 -3,232.82 -4,297.28 -5,347.31 -6,523.59 
Non-oil -2,246.42 -2,451.74 -2,197.00 -2,669.88 -3,522.31 -4,217.88 -5,107.52 
Oil -520.13 -516.77 -510.02 -562.94 -774.97 -1,129.43 -1,416.07 
Trade account -830.23 -1,101.40 -691.83 -670.43 -1,592.82 -2,545.10 -2,788.51 
Services (net) -187.04 -182.12 -240.31 -426.44 -554.01 -344.99 -382.60 
of which interest payments -107.00 -106.06 -124.00 -118.06 -167.49 -159.31 -109.13 
Private transfers (net) 498.97 709.73 680.00 1,017.19 1,287.05 1,549.76 1,806.09 
Current account (excl. official transfers) -518.30 -573.79 -252.14 -79.68 -859.77 -1,340.34 -1,365.02 
Official transfers (net) 131.88 249.32 220.20 382.01 543.93 566.94 809.08 
of which HIPC grants n.a. n.a. 62.00 80.20 109.25 104.70 462.39 
Current account (incl. official transfers) -386.41 -324.47 -31.94 302.33 -315.84 -773.40 -555.94 
Capital account 369.29 392.23 -38.62 340.36 201.57 834.49 851.77 
   Official capital 139.70 84.61 -115.18 85.77 52.45 141.14 146.85 
   Private capital 176.80 137.31 105.66 199.91 331.98 559.29 717.84 
   Short-term capital 52.79 170.31 -29.10 54.67 -182.86 134.05 -12.92 
Errors and omissions -99.66 -59.14 110.36 -84.37 103.81 23.25 119.29 
Overall balance -116.78 8.62 39.80 558.31 -10.46 84.34 415.12 
Changes in official external position 116.98 -8.62 -39.80 -558.31 10.46 -84.34 -415.12 
Exceptional financing 27.00 201.00 118.00 99.41 196.04 225.00 121.62 
Use of fund credit -2.60 1.28 54.00 67.35 7.10 25.34 -264.56 
Other reserve changes 92.58 -210.90 -211.80 -725.07 -192.68 -334.68 -272.18 
Memo items 
Trade deficit/GDP (%) -16.3 -20.6 -11.7 8.4 18.0 -27.6 -22.7 
Table I.4 (cont'd) Ghana WT/TPR/S/194/Rev.1 
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 2000 2001 2002 2003 2004 2005 2006a 
Current account deficit/GDP (%):        
Excluding official transfers -10.2 -10.7 -4.3 -1.0 9.7 -14.5 -11.1 
Including official transfers -7.6 -6.1 -0.5 3.8 3.6 -8.4 -4.5 
External debt outstanding 6,062.0 6,377.0 6,585.0 8,034.57 6,367.93 6,749.75 2,720.6 
n.a. Not applicable. 
a Provisional. 
Source: Bank of Ghana. 
11. Private transfers from foreign-based non-govern mental organizations and Ghanaians living 
abroad have increased considerably in recent year s, to over US$1.8 billion in 2006.  Net official 
transfers also grew considerably, mainly due to de bt relief under the HIPC initiative.  Under the HIPC 
initiative, Ghana reached the completion point in Ju ly 2004 with a cancellation of foreign debts of 
US$3.5 billion in nominal terms.5  At end 2006, Ghana's outstanding foreign debt amounted to 
US$3.3 billion, of which US$2.38 billion was long-term  debt.  Debt relief has led to a significant 
improvement in Ghana's debt service indicators. 
12. Ghana's gross international reserves grew near ly tenfold between 2000 and 2006, to nearly 
US$2.3 billion.  As a result, and despite strongly growing imports, reserves covered nearly three 
months of imports of goods and services in  2006, up from less than one month in 2000. 
(3) TRADE AND INVESTMENT PERFORMANCE  
(i) Trade in goods and services 
13. Merchandise exports have more than doubled sin ce Ghana's last Review.  Export growth was 
supported by favourable international prices and in creased production levels of Ghana's major export 
products, but also by grow ing non-traditional exports.6  Cocoa beans and other cocoa products, gold, 
and wood products are Ghana's most important export products (Chart I.1 and Table AI.1).  The share 
of cocoa beans in Ghana's merchandise exports depends on harvest quantities and world market 
prices:  it was between 15% and 56% over 2000-06.  Other cocoa products (paste, butter) together 
accounted for between 3% and 6% of export revenu e.  Gold accounted for between 7% and 37% of 
total exports, and wood articles and timber for less th an 7%, down from nearly 10% in 2000.  Various 
non-traditional exports, such as bananas, textiles, a nd footwear, have increased their share in total 
exports. 
14. Increases of merchandise imports were triggere d by domestic growth and rising oil prices.  
The structure of imports remained relatively stab le between 2000 and 2006:  most were manufactured 
products (70% in 2006), mainly machinery, transpor t equipment, and semi-manufactures (Chart I.1 
and Table AI.2).  Agricultural goods and fuel s each account for about 15% of imports.   
15. Europe (the EC in particular) has remained Ghana's most important export destination, 
although its share in Ghana's exports declined fro m nearly 73% in 2000 to less than 43% in 2006 
(Chart I.2 and Table AI.3).  South Africa became th e leading single destination of Ghana's exports in 
2005, with gold being the main export item.  Th e authorities indicated that the increase of gold 
exports to South Africa was mainly triggered by lower refinery costs in South Africa vis-à-vis  
competing destinations. 
                                                      
5 This cancellation was equivalent to a reduction in net present value terms of US$2.2 billion. 
6 For documentation purposes, exports are classified into two broad categories: traditional and non-
traditional. Traditional exports are gold, diamonds, ba uxite, manganese, cocoa beans, coffee, timber, and 
electricity.  Non-traditional export items include processe d forms of the above products and all other products.  WT/TPR/S/194/Rev.1 Trade Policy Review 
Page 6 
 
 
0%10%20%30%40%50%60%70%80%90%100%
2000 2001 2002 2003 2004 2005 2006
0%20%40%60%80%100%
2000 2001 2002 2003 2004 2005 2006Chart I.1
Structure of merchandise trade, 2000-06
(a) Exports (f.o.b.)
(b) Imports (c.i.f.)
Source: WTO Secretariat calculations, based on data provided by the Ghanaian authorities.Semi-manufactures Other foodMining Cocoa beans
Agricultural raw material
Iron and steel Electrical machinesOther manufacturesGold
Food Chemicals Transport equipment
Other semi-manufactures Fuels Textiles and clothing
Other primary products Non-electrical machinery Other consumer goodsOther
Other
 Ghana WT/TPR/S/194/Rev.1 
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0% 20% 40% 60% 80% 100%2000200120022003200420052006Chart I.2
Direction of merchandise trade, 2000-06
0% 20% 40% 60% 80% 100%2000200120022003200420052006(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on data provided by the Ghanaian authorities.The Netherlands Belgium South Africa JapanGermany Other Africa United States Other Europe IndiaThe Netherlands South Africa United Kingdom AsiaBelgium United States Other Europe Other Africa
Switzerland France Other Burkina Faso
United Kingdom Nigeria France China Other
 WT/TPR/S/194/Rev.1 Trade Policy Review 
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16. The EC has remained Ghana's most important  source of imports, followed by Nigeria and 
China (Chart I.2 and Table AI.4).  The EC's sh are dropped, however, from over 43% in 2000 to 36% 
in 2006.  Within the EC, the United Kingdom, Belgiu m, and Germany are the most important sources 
of imports.  The share of imports originating in Ch ina increased from 3% in 20 00 to over 9% in 2006.  
Over the same period, India incr eased its share from less than 2% to  nearly 4%.  In Africa, which 
accounts for some 20% of Ghana's total imports, Ni geria and South Africa are the major sources. 
17. Ghana has traditionally been a net importer of services.  The services account deficit peaked 
in 2003 and has been decreasing since then.  Trav els represent the most important services export, 
while imported services comprise mainly freight and merchandise insurance. 
(ii) Foreign investment 
18. In most years, mining, in particular gold production, accounts for the lion's share of foreign 
investment in Ghana (Table I.5).7  FDI inflows into the sector totalled nearly US$2.6 billion between 
2001 and 2005.  In addition, an estimated US$45 m illion per year is invested by mining sector support 
companies.  Total foreign investment outside the mining sector amounted to more than US$3 billion between 2001 and 2006.  The manufacturing sector r eceived a major investment of US$2.2 billion in 
2006, by the U.S. company ALCOA, whereas betw een 2001 and 2005, annual FDI inflow into this 
sector was below US$40 million.  Other important target sectors are construction and services.  Between 2001 and 2006, the United States was the mo st important source of foreign investment in 
Ghana, followed by the United Kingdom and Italy.  Ghana was ranked 110
th out of 141 economies in 
UNCTAD's Inward FDI Potential Index, and 102nd in the Outward FDI Performance Index 2003-05.  
According to the authorities, factors affecting FD I into Ghana include its political and economic 
stability, and competitive wages. 
Table I.5 
Investment inflows by type of activity, 2001-06 
(US$ million) 
 Total 
projects  Total 
investment  2001 2002 2003 2004 2005 2006 
Manufacturing 322 2,286.09 9.58 16.24 21.94 28.25 37.30 2,172.78 
Services (excl. tourism and trade) 292 295.64 49.77 7.91 69.23 78.24 29.42 61.07 
Tourism 113 73.14 5.31 3.71 4.01 41.11 3.98 15.01 
Building and construction 79 188.37 5.16 9.06 1.94 14.99 89.92 67.29 
Agriculture 65 54.68 6.03 20.79 8.37 5.76 4.28 6.45 
Trade 223 141.97 21.46 7.42 12.88 17.93 37.05 45.24 
Mininga         
By producing companies  .. 1,403.0 109.00 111.00 356.00 390.00 437.00 .. 
By exploration companies  .. 1,212.13 145.20 230.50 248.70 311.63 276.00 .. 
Total  1,094 5,655.02 351.51 406.63 723.07 887.91 914.95 2,367.84 
.. Not available. 
a Information provided by the Ghana Minerals Commission.  
Source:  Ghana Investment Promotion Centre (2007), Fourth Quarter (2006) Investment Report , Volume 2, Issue 4, 
 January;  and Ghana Minerals Commission. 
19. Through foreign acquisitions and investment s by its major gold production company, 
AngloAshanti Gold, Ghana has become an important foreign investor in the mining sector of various 
                                                      
7 Data on foreign investment in the mining sector are collected by the Minerals Commission, whereas 
data on non-mining FDI are collected by the Ghana Investment Promotion Centre. Ghana WT/TPR/S/194/Rev.1 
 Page 9 
 
 
other African countries.  Ghana's outward inv estment stock amounted to some US$151 million in 
2005.8 
(4) OUTLOOK  
20. The medium-term outlook for Ghana's economy is  positive, with strong growth projected.  
According to the IMF, real GDP is expected to grow at over 6% annually in the medium term, and 
between 7% and 9% in the long term;  this may help to further reduce poverty and to achieve the 
millennium development goals.  Tre nd growth is assumed to be suppor ted by foreign debt reduction, 
ongoing structural reforms, an improved investment environment, and increasing efficiency in the 
public sector.  Ghana's overall fiscal deficit is expected to stabilize at around 6% of GDP.  The 
importance of grants is likely to decline in the medi um-term;  this is to be compensated by increasing 
fiscal revenue. 
21. Inflation rates are expected to edge up slightly  in the short-term on acc ount of petroleum price 
adjustments and changes in utility tariffs.9  However, this rise should be  small and remain well within 
expectations.  In the medium and long term, inflati on is projected to decline to one-digit rates.  The 
full establishment of the West African Monetary Zone may also help further reduce inflation.  Exports 
and imports are expected to grow at double-digit rates;  the current account deficit to stabilize at 
between 7% and 8% of GDP, while international r eserves are expected to in crease slightly to above 
three months of imports. 
22. Uncertainties surrounding projections include dete rioration of cocoa and gold prices, climatic 
conditions, and the behaviour of wages and prices in  the face of volatile or rising energy prices.  
Unfavourable wage and price developments c ould undermine recently gained macroeconomic 
stability.   
                                                      
8 UNCTAD (2006). 
9 Bank of Ghana (2007b).