A new World Bank Group report has revealed that there are high expectations for the Ghanaian economy to pick up this year.
The prediction according to the report, is on the back of increased investor confidence in the Ghanaian economy, oil production from new oilfields and solution to the country’s energy crisis.
The report, published Monday in Washington, said in spite of subdued growth forecasts in 2016 at 3.3% several other countries, including Ghana, were expected to see growth.
“Among frontier markets, growth is expected to edge up in Ghana, driven by improving investor sentiment, the launch of new oildfields, and the easing of electricity crisis,” the report said.
However, the report mentioned that Ghana, Kenya, Mozambique, Tanzania and Zambia as countries whose external debt levels had risen significantly in 2015, noting that “Ghana, Kenya and Zambia have tapped the international bond market at increasingly expensive yields.”
According to the report, economic activity in sub-Saharan Africa (SSA) slowed in 2015, with Gross Domestic Product (GDP) averaging 3.% down from 4.5% in 2014.
World Bank Vice-President for Africa, Makita Diop urged countries in SSA to increase domestic resource mobilization to lessen the impact of the expected volatilities.
“As countries adjust to more challenging global environment, stronger efforts to increase domestic resource mobilization will be needed. With the trend of falling commodity prices, particularly oil and gas, it is time to accelerate all reforms that will unleash the growth potential of Africa and provide affordable electricity for African people,” he added.
On the outlook for SSA, the report predicted difficulty in the near term, noting that “commodity prices are expected to remain low, amid a gradual pickup in global activity, especially in emerging markets and developing economies, and external financing conditions are expected to tighten.”