Ghana’s current account expected to expand to 5% of GDP; gold exports to remain buoyant
- The Economist Intelligence Unit (EIU) has predicted that Ghana’s current account is expected to expand to 5% of its Gross Domestic Product (GDP)
- It added that Ghana's external accounts would be severely affected by the economic fallout from the coronavirus
- The EIU has also projected that there will be a sharp increase in revenue from gold exports, fuelled by rising production and increased prices
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The latest prediction from the Economist Intelligence Unit (EIU) shows that Ghana’s current account is expected to expand to 5% of its Gross Domestic Product (GDP).
EIU’s analysis also revealed that the economic fallout from the coronavirus will place significant additional pressure on Ghana's external accounts.
This, per a report by classfmonline.com, would be as a result of a near-halving in global oil prices.
READ ALSO: Ghana requests for $120 million dollars from IFAD to boost agriculture
YEN.com.gh has learned that cocoa production is also likely to decline because the industry is constrained by poor weather conditions and crop disease.
Information available suggests that it would, however, be partly compensated by higher international prices.
The EIU has also predicted a sharp expansion in revenue from gold exports, fuelled by rising production and increased prices.
Together with lower imports on the back of a contracting economy, this will help to limit the deterioration in the trade balance in 2020-21.
Meanwhile, the Economist Intelligence Unit (EIU) has revealed that Ghana’s economy is likely to contract by 1% in 2020.
This contradicts the 1.5% Gross Domestic Product (GDP) growth rate announced by the government and confirmed by the International Monetary Fund (IMF) and the World Bank.
It is also in contradiction with the 2% growth rate predicted by Fitch, an international rating agency.
The EIU believes Ghana’s economy will contract because of falling oil prices.
READ ALSO: Fitch rates Ghana's economy at 'B'; predicts swift recovery
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Source: YEN.com.gh
