The Ghanaian economy has continued to grow strongly, but must confront deteriorating fiscal and external balances within the context of a darkening global environment. The private sector is responding positively to the government’s development programmes and the improved business environment, with rising bank lending and capital inflows suggesting increasing investor confidence.

Real GDP growth was around 6.4 per cent in 2008, slightly exceeding the 5.7 per cent average in 2000-07. Growth is projected to dip in 2009 as export performance weakens on account of the global economic crisis, but then to pick up again in 2010 as Ghana begins to export crude oil.

Ghana’s social stability and deepening democracy, highlighted by successful elections in December 2008, bodes well for continuing economic expansion. Perceptions of corruption in public life remain a problem, however.

Sustainable growth to achieve Ghana’s objective of middle-income country status over the next decade requires continued high levels of investment but is also conditional on addressing the widening fiscal and current account deficits and declining foreign exchange reserves.