Ghana Economic Update, October 2014

This report is the most recent in a series aimed at monitoring economic developments in Ghana and has two sections. The first section summarizes the recent macroeconomic developments in the country while the second section presents the main findings on poverty and employment published recently by the Ghana statistical service. Ghana s overall macroeconomic conditions have deteriorated further in 2014 with large twin-deficits lingering, fueling government debt and inflation, a sharp depreciation of its currency, and a weaker pace of economic growth. The fiscal deficit remains the biggest source of vulnerability in the Ghanaian economy. Preliminary figures show the fiscal deficit was 9.2 percent of GDP in the first half of 2014, driven by the high wage bill and rising interest costs. The wage bill grew 25.7 percent (y-o-y) during the first half of 2014 despite promised measures to contain it, while interest payments reached 5% of GDP. Total domestic revenue collections were dragged down by a contraction in non-tax revenue while tax revenue only increased slightly to 15.6 percent of GDP. With large expenditures planned for the second half of the year, the deficit is projected to be around 10% of GDP, above the government s 8.8 percent target for 2014. A careful analysis of the determinants of poverty and inequality, and their interaction with labor market variables is just beginning, as the 2013 surveys were just released. However, these preliminary findings highlight how critical are Ghana s policy decisions over the next 12 months to pursue more inclusive and stable growth. Urgent efforts are needed to build a more predictable policy environment that facilitates diversification from capital intensive activities in extractive industries towards more labor and land intensive activities in the agriculture and service sectors.

Bibliographic Details

Main Authors:	Oppong, Felix, Aykut, Dilek, Smith, Gregory, World Bank
Format:	Economic Updates and Modeling biblioteca
Language:	English en_US
Published:	Washington, DC 2014-10
Subjects:	ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, ADMINISTRATIVE REGIONS, AGRICULTURAL SECTOR, AGRICULTURE, AMORTIZATION, ARREARS, ASSETS, BALANCE OF PAYMENTS, BANKING SECTOR, BASIS POINTS, BUDGET DEFICIT, CAPITAL FLOWS, CAPITAL GOODS, CAPITAL OUTFLOW, CENTRAL BANK, COASTAL REGION, COMMERCIAL BANKS, COMMODITY PRICES, CONSUMER PRICE INDEX, CONSUMER PRICE INFLATION, CONSUMER PRICES, CONSUMPTION BASKET, CONSUMPTION EXPENDITURE, CONSUMPTION GROWTH, CONSUMPTIONS, COUPON, COUPON PAYMENT, CREDIT POLICY, CURRENCY, CURRENCY DEPRECIATION, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT COMPOSITION, DEBT ISSUANCE, DEBT OUTSTANDING, DEBT SERVICE, DEBT STOCK, DEFICITS, DEPOSIT, DEPOSIT MONEY BANKS, DETERMINANTS OF POVERTY, DEVELOPING COUNTRIES, DEVELOPMENT POLICIES, DIVERSIFICATION, DOMESTIC BANKING, DOMESTIC BORROWING, DOMESTIC CREDIT, DOMESTIC DEBT, ECONOMIC DEVELOPMENTS, ECONOMIC GROWTH, ECONOMIC SECTORS, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT SOURCE, EQUITIES, EUROBOND, EXCHANGE RATE, EXCHANGE RATE REGIME, EXCISE TAXES, EXPENDITURE, EXPENDITURES, EXPORT REVENUE, EXTERNAL DEBT, EXTERNAL FINANCING, EXTRACTIVE INDUSTRIES, EXTREME POVERTY, EXTREME POVERTY LINE, FARMERS, FINANCIAL CRISIS, FISCAL BALANCE, FISCAL DEFICIT, FIXED INVESTMENT, FOOD CONSUMPTION, FOOD PROCESSING, FOREIGN ASSETS, FOREIGN CAPITAL, FOREIGN DIRECT INVESTMENT, GDP, GDP PER CAPITA, GINI COEFFICIENT, GOLD, GOVERNMENT DEBT, GROSS DOMESTIC PRODUCT, GROWTH RATE, GROWTH RATES, HOUSEHOLD HEADS, HOUSEHOLD INCOME, HUMAN DEVELOPMENT, HUMAN DEVELOPMENT INDEX, IMBALANCE, IMPORT, IMPORT DEMAND, IMPORTS, INCIDENCE OF POVERTY, INCOME INEQUALITY, INCOME ON FOOD, INFLATION, INFLATIONARY PRESSURE, INTEREST COSTS, INTEREST EXPENDITURE, INTEREST PAYMENT, INTEREST PAYMENTS, INTEREST RATES, INTERNATIONAL RESERVES, INTERNATIONAL STANDARDS, LABOR FORCE, LABOR MARKET, LACK OF EDUCATION, LIFE EXPECTANCY, LIQUIDITY, LIVESTOCK SECTOR, LIVING STANDARD, LIVING STANDARDS, LOAN, M2, MACROECONOMIC CONDITIONS, MATURITY, MONETARY EXPANSION, MULTIPLE EXCHANGE RATE, NATIONAL POVERTY, NATIONAL POVERTY LINE, NOMINAL EXCHANGE RATE, NOMINAL WAGES, OIL EXPORTS, OPEN MARKET, OPEN MARKET OPERATIONS, PENSION, POOR, POOR POPULATION, POPULATION GROWTH, PORTFOLIO, PORTFOLIO INVESTMENT, POVERTY GAP, POVERTY GAP INDEX, POVERTY INCIDENCE, POVERTY LEVELS, POVERTY LINE, POVERTY LINES, POVERTY PROFILE, POVERTY RATE, POVERTY RATES, POVERTY REDUCTION, PRICE INCREASE, PRICE INFLATION, PRIVATE CONSUMPTION, PUBLIC DEBT, RATES OF INFLATION, REAL EXCHANGE RATE, REDUCTION IN POVERTY, RELATIVE PRICES, REMITTANCES, RESERVE, RESERVE REQUIREMENT, RESERVES, RETURN, RURAL, RURAL AREAS, RURAL COMMUNITIES, RURAL PHENOMENON, RURAL POPULATION, SCHOOL FEEDING, SELF-EMPLOYMENT, SHORT TERM CAPITAL INFLOWS, SHORT-TERM CAPITAL, SHORT-TERM INSTRUMENTS, SHORTFALL, SLOWDOWN, SOVEREIGN BONDS, STABLE GROWTH, STOCKS, TAX, TOTAL EXTERNAL DEBT, TOTAL REVENUE, TRADE CREDIT, TRADE DEFICIT, TRADING, TREASURY, TREASURY BILL, TREASURY BILL RATE, TREASURY BILLS, TREASURY BOND, TREASURY BOND YIELD, TREASURY NOTE, TRUST FUND, UNEMPLOYMENT, UNEMPLOYMENT RATE, URBAN REGIONS, WAGE EARNERS, WELFARE MONITORING, WITHHOLDING TAXES, WORLD DEVELOPMENT INDICATORS,
Online Access:	http://documents.worldbank.org/curated/en/2014/10/20325650/ghana-economic-update-october-2014 http://hdl.handle.net/10986/20801
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