Country Report Ghana January 2009

Outlook for 2009-10

• John Atta Mills has been sworn in as president after an unprecedentedly close election. Ghana's reputation as one of Africa's strongest emerging democracies has been reinforced, but many challenges remain.
• A key question is how the National Democratic Congress (NDC) will wield its new power against the former ruling New Patriotic Party (NPP). The NDC may look to investigate and arrest prominent NPP members on charges of corruption.
• The new government's economic policy is expected to remain focused on reducing inflation and boosting economic growth and investment.
• Real GDP growth is forecast to ease to 5.2% in 2009 on the back of weaker credit growth and external demand, before recovering modestly to 5.4% in 2010, supported by investments in the nascent oil sector and lower inflation.
• After a steep fall in 2008, the cedi looks to be closer to its appropriate level against the US dollar. The stronger dollar and lower foreign-exchange earnings will see the cedi continue a gradual slide against the US currency in 2009-10.
• Lower oil prices and the cessation of election-related spending are expected to cause average inflation to fall to 11.7% in 2009. In 2010 tighter fiscal policy and lower domestic food prices will help to lower inflation to an average of 10.8%.
• Forecast lower import prices are expected to offset slower growth in exports and remittances, helping to reduce the current-account deficit to 13.7% of GDP in 2009 and 13.2% of GDP in 2010.

Monthly review

• The opposition candidate, Mr Atta Mills, was elected president after a second round of voting, held on December 28th, defeating Nana Akufo-Addo of the ruling NPP.
• Voter turnout in the first round of the presidential election was 69.5%, down from 85.1% in 2004, although turnout for the second round increased to 72.9%.
• The NDC also prevailed in the simultaneous parliamentary election, winning 114 seats, against 107 for the NPP.
• The government announced in December that it was deferring the presentation of the budget and economic policy statement for 2009 on account of the expected change of government in January 2009.
• A US company, Kosmos Energy, has announced that it will receive a US$100m loan from the International Finance Corporationthe private investment arm of the World Bankto fund development of the Jubilee oilfield.
• A Kuwaiti-owned telecommunications company, Zain International, launched commercial services for its mobile network in Ghana at the end of 2008.

This report covers the following industry codes:
SIC Code: 60;48
NAICS Code: 52;517

This report covers the following industry codes:
SIC Code: 60;48
NAICS Code: 52;517