Ghana - Current economic situation and prospects

I * .=. DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. AW-40 CURRENT ECONOMIC SITUATION AND PROSPECTS OF GHANA VOLUME I (In two Volumes) UPDATING MEMORANDUIM September 26, 1972 Western Africa Department |This report was prepared for official use only by the Bank Group. It may not be puiblished, quoted| IOr cited without Bank Group authorization. The Bank GrOUP does not accept responsibility for the Iaccuracy or completeness of the report,  CURPFNCY EQUIVALENTS 1 Cedi = US$0.78 1 US Dollar Cedi 1.28  TABLE OF CONTENTS Page Nos. SUMMARY AND CONCLUSIONS ................................ i-ix I. INTRODUCTION ......................................... 1 II. TRADE AND BALANCE OF PAYMENTS ........................ 5 Recent Trade and Balance of Payments Developments ... 5 Balance of Paymen'ts Prospects 1972-73 ................. 8 1972 Import Program ....................................12 Rationale for the 1972 Import Program .........14 Implementation of the Import Program 15 III. THE GOVERNMENT BUDGET - 1971/72 AND OUTLOOK FOR 1972/73 18 Developments in 1971/72 .............................. 18 Sequence of Budgetary Measures taken ............... 18 Estimated Outturn of the 1971/72 Budget ............ 21 Current Account ................................... 21 Capital Expenditure .............................. 23 Below-the-line Projects ........................... 23 ,BRD Assessment of 1972/73 Budget Outlook ...... 24 Ghana Government Budget 1972/73 ...................... 28 IV. PRICES, PRICE CONTROLS AND SUBSIDIES .......... 32 Recent Price Developments ............................ 32 Price Controls ....................................... 32 Essential Commodities Program .................. 35 V. MDNEY AND CREDIT ..................................... 39 Recent Trends in Money and Credit ........................39 The Outlook for FY73 .................................. 42 Technical Note ........................................ 46 VI. BALANCE OF PAYMENTS ROJECTIONS 1972-8o-85............. 53 Projections 1972-80 ................................... 55 Merchandise Exports ................................ 55 Non-fabtor 8ervices ........................... 61 Receipts ............................................ 61 Payments ............................................. 61 Net ITnvestment Income................................ 61 Direct Investment Income .................... ....... 61 s t X ;E1 a s .X< + i ti. 6 w r;: : a -C > , sr.......................................................................................R.vsr r .... r.:.-:tr e<.r A