• Gold and cocoa are key export commodities that drive economic growth for Ghana
• The easing of COVID-19 restrictions will boost economic recovery efforts
International research agency, Fitch Solutions has revealed Ghana’s export and fixed investment are expected to witness some steady recoveries in 2021.
According to Fitch’s 4th Quarter 2021 country report, export and fixed investment for the period will contribute 0.8% to real Gross Domestic Product (GDP) growth.
“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,” the Fitch report said.
“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 added.
The report added that Ghana’s gold sector will continue to enhance growth in exports as well as oil and cocoa exports.
These trends according to Fitch Solutions will be accompanied by rising business investment in the Ghanaian mining sector by firms such as AngloGold Ashanti, Galiano Gold and Newmont Gold Corporation.
“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.
Meanwhile, Ghana scored 45.7 on Fitch Solutions Operational Risk Index. The score was however above the regional average of 35.0. Read Full Story