Ghana’s non-oil GDP projected at 2.3% in 2015

As Ghana’s economy faces strong headwinds, non-oil GDP for the year 2015 is projected to be at 2.3 percent.

According to the think tank, Centre for Policy Analysis (CEPA) Ghana’s economy is characterized by high government spending, high fiscal deficit, high external merchandise trade (and current account) deficit, low domestic savings and heavy public (external) debt – which CEPA refers to as the “HIPC Syndrome.”

The Executive Director of CEPA, Dr. Joe Abbey has said the economy which was growing at 8.1 percent in 2010 is now “running at 3.9 percent.”

“For 2015, the non oil economy is projected at 2.3 percent,” he said.

Commenting on oil production, Dr. Abbey said the rush to produce at high levels would not augur well for the future. He pointed out that in five years projected oil projection would fall below current levels both at Jubilee and TEN.

Under the circumstances, he said “the advice is try and stay with your non-oil sector and when you get a good windfall, park it in savings.”

“Don’t take it all in and adjust to your new life, if it won’t last,” he added.

Prof. Abbey also called for transparency in the country’s oil revenues so the the people will know the facts. He said while it is announced that the country has earned $3 billion from oil, in actual fact the country is earning just about 20 percent of that amount from carried interest and royalties, arguing that, that is the reason why, most citizens are not feeling the impact and benefits of the oil discovery.

Prof. Abbey was speaking to journalists at a press briefing after the Greenhill Roundtable for Effective Economic Management and Governance (GREEMG), a three-day workshop organized from June 22 to 24, 2015 under the theme “From home-grown through Senchi to IMF Bail-out’.

By Emmanuel K. Dogbevi