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World Bank On Ghana’s Economic Growth

The World Bank has projected that Ghana will be the fastest growing economy in Sub-Saharan Africa, with growth rate of 13.4 per cent in 2011, dropping to 10 per cent in 2012. Launching the Bank’s global economic prospects report via a video-conference today, Mr. Andrew Burns, Manager of Global Macroeconomics in the World Bank’s Prospects Group, said Ghana is still in position to register strong economic growth without the oil sector, particularly in construction services as large infrastructure projects are being undertaken.

He said, Ghana’s economy benefited from strong rebound of both volumes and prices of gold and cocoa increase in tourism, and higher household and government spending last year, with growth rate estimated at 6.6 per cent in 2010. However, Mr. Burns cautioned that if the inflows from the oil sector in Ghana are not managed prudently, it can distort the incentive structure for agricultural exports. He said developing countries have recovered so fast from the global economic downturn and are now pulling along the high income countries, which is unusual. The report noted that Africa appears to have sustained growth and transformation in 2010 and the private sector is 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 have in addition, recovered from the world food crisis and has 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 with developing countries contributing almost half of the global growth,” it said.

It estimated that global GDP, which expanded by 3.9 per cent in 2010, will slow to 3.3 per cent in 2011, before climbing back to 3.6 per cent in 2012.

The Bank noted that developing countries are expected to grow about seven per cent in 2010, six per cent in 2011, and 6.1 per cent in 2012.

It said the growth rate in developing countries will continue to outstrip growth in high-income countries which were projected to grow at 2.8 per cent in 2010, 2.4 per cent in 2011 and 2.7 per cent in 2012. The Bank said strong developing-country domestic demand growth is leading the world economy, yet persistent financial problems in some high-income countries are still a threat to economic growth and required urgent policy actions.
Low income countries are projected to be strengthened more with a growth rate of 6.5 per cent in both 2011 and 2012, since their countries saw trade gains in 2010, and overall, their GDP rose by 5.3 per cent in 2010. According to Mr. Burns, the global food prices are having a mixed impact. He said in many economies, dollar depreciation, improved local conditions, and rising prices for goods and services indicate that the real price of food have not risen as much as the dollar price of internationally traded food commodities.
Source: GNA

 

World Bank

The World Bank has projected that Ghana will be the fastest growing economy in Sub-Saharan Africa, with growth rate of 13.4 per cent in 2011, dropping to 10 per cent in 2012. Launching the Bank’s global economic prospects report via a video-conference today, Mr. Andrew Burns, Manager of Global Macroeconomics in the World Bank’s Prospects Group, said Ghana is still in position to register strong economic growth without the oil sector, particularly in construction services as large infrastructure projects are being undertaken.

He said, Ghana’s economy benefited from strong rebound of both volumes and prices of gold and cocoa increase in tourism, and higher household and government spending last year, with growth rate estimated at 6.6 per cent in 2010. However, Mr. Burns cautioned that if the inflows from the oil sector in Ghana are not managed prudently, it can distort the incentive structure for agricultural exports. He said developing countries have recovered so fast from the global economic downturn and are now pulling along the high income countries, which is unusual.

The report noted that Africa appears to have sustained growth and transformation in 2010 and the private sector is 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 have in addition, recovered from the world food crisis and has 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 with developing countries contributing almost half of the global growth,” it said. It estimated that global GDP, which expanded by 3.9 per cent in 2010, will slow to 3.3 per cent in 2011, before climbing back to 3.6 per cent in 2012.

The Bank noted that developing countries are expected to grow about seven per cent in 2010, six per cent in 2011, and 6.1 per cent in 2012.

It said the growth rate in developing countries will continue to outstrip growth in high-income countries which were projected to grow at 2.8 per cent in 2010, 2.4 per cent in 2011 and 2.7 per cent in 2012. The Bank said strong developing-country domestic demand growth is leading the world economy, yet persistent financial problems in some high-income countries are still a threat to economic growth and required urgent policy actions. Low income countries are projected to be strengthened more with a growth rate of 6.5 per cent in both 2011 and 2012, since their countries saw trade gains in 2010, and overall, their GDP rose by 5.3 per cent in 2010. According to Mr. Burns, the global food prices are having a mixed impact. He said in many economies, dollar depreciation, improved local conditions, and rising prices for goods and services indicate that the real price of food have not risen as much as the dollar price of internationally traded food commodities.
Source: GNA

 

Doing Business reform making it easier to do business. Doing Business reform making it more difficult to do business.

 
DB2012:
Starting a Business: Ghana increased the cost to start a business by 70%.
 
DB2011:
Getting Credit: Ghana enhanced access to credit by establishing a centralized collateral registry and by granting an operating license to a private credit bureau that began operations in April 2010.
 
DB2010:
Starting a Business: Business start-up was simplified by further streamlining registration procedures through the creation of a customer service desk at the one-stop shop.
 
DB2009:
Starting a Business: The requirements to register employment vacancies and to obtain a company seal were abolished, reducing the number of procedures to start a business.
 
DB2008:
Starting a Business: The ongoing computerization at the company registry and improved operations at the Environmental Protection Agency reduced business registration time.
 
Registering Property: A ministerial directive eliminating the requirement to go through the Lands Commission reduced property registration time.
Getting Credit: The new Insolvency Law protect secured creditors' proceedings against automatic stay in case or reorganization.
 
Trading Across Borders: Operational changes at the Port Authority permitted to reduce importation time.
 
Enforcing Contracts: Six commercial courts are now operational in Accra, significantly reducing the average turn-around of cases thanks to mandatory arbitration and mediation and thanks to new High Court Civil Procedure Rules.
Source:worldbank.
 
 
 
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