Ghana : Bringing Savers and Investors Together
After 10 years of successful adjustment,
with real economic growth averaging 5 percent per year,
Ghana's recorded savings and investment rates remain
very low - even by sub-Saharan African standards. However,
survey evidence suggests that actual savings and investment
rates are much higher than recorded rates. National accounts
statistics do not capture a large part of the underlying
savings and investment activities of the household, rural,
and informal sectors. Comparative financial indicators
confirm that Ghana's financial system is not very deep
and as a result not fully contributing to economic growth.
Ghana's broad money holdings are small relative to GDP
when compared to other countries with similar per capita
income. Also, currency holdings are relatively large,
suggesting that Ghanaians prefer cash to bank accounts.
Meanwhile, the bulk of financial savings has financed public
sector deficits, leaving little for private investment
finance. There is considerable evidence that many household
savings are invested in real assets yielding zero, or
negative, returns. Widespread lack of trust in formal
financial channels makes these nevertheless the preferred
form of investment. Ghana can grow faster with existing
savings by improving the efficiency of investments through
enhanced finanical intermediation.
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Bibliographic Details
| Main Authors: |
Boehmer, Hans-Martin,
Wetzel, Deborah,
Gupta, Arvind |
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| Language: | English |
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| Published: |
World Bank, Washington, DC
1995-04
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| Subjects: | SAVINGS,
INVESTMENT,
HOUSEHOLDS,
ECONOMIC GROWTH,
FINANCIAL INSTITUTIONS,
PUBLIC DEBT,
PRIVATE INVESTMENTS,
SAVINGS BEHAVIOR BANK DEPOSITS,
BANKING SECTOR,
BANKING SYSTEM,
BANKS,
CAPITAL MARKETS,
CENTRAL BANK,
COMMERCIAL BANKS,
DEBT,
DEMAND DEPOSITS,
DEPOSITS,
FINANCIAL INTERMEDIATION,
FINANCIAL MARKETS,
FINANCIAL RESOURCES,
FINANCIAL SECTOR,
FINANCIAL SYSTEM,
FISCAL,
FISCAL DEFICIT,
FISCAL DEFICITS,
FISCAL MANAGEMENT,
FISCAL POLICY,
FORMAL FINANCIAL SYSTEM,
FORMAL INSTITUTIONS,
GOVERNMENT OWNERSHIP,
GOVERNMENT SECURITIES,
HIGH INFLATION,
HOUSING,
INCOME,
INFLATION,
INFORMAL SECTOR,
INSTITUTIONAL FOUNDATIONS,
INSURANCE,
INSURANCE FIRMS,
INSURANCE INDUSTRY,
INTEREST RATES,
INVENTORIES,
INVESTMENT RATES,
LACK OF COMPETITION,
LEGISLATION,
LEVEL PLAYING FIELD,
LIQUIDITY,
MACROECONOMIC ENVIRONMENT,
MACROECONOMIC INSTABILITY,
MACROECONOMIC STABILITY,
MERCHANT BANKS,
MONETARY POLICIES,
MONETARY POLICY,
NEW ENTRANTS,
OPEN MARKET OPERATIONS,
OPERATING EFFICIENCY,
PRICE STABILITY,
PRIVATE INVESTMENT,
PRIVATE SECTOR,
PUBLIC SECTOR,
REAL INTEREST,
REAL INTEREST RATES,
REGULATORY FRAMEWORK,
RESERVE REQUIREMENTS,
RURAL BANKS,
SAVINGS BEHAVIOR,
SAVINGS RATES,
SECURITIES,
SOCIAL SECURITY,
STATE OWNERSHIP,
STATE-OWNED ENTERPRISES,
VENTURE CAPITAL, |
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| Online Access: | http://documents.worldbank.org/curated/en/1995/04/1615062/ghana-bringing-savers-investors-together
https://hdl.handle.net/10986/9997
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