Ghana - Economic position and prospects

ReIport No. 1533a=GH Gkhar,a: E'cor,o;mic DP-osit-iron D- P roc %.-JI I(4AI ICA* L-%AJI It-Ji I IIM, I k-J3ILUk-JI I U]I IU.. I I kIJo[AZAL)'-L Prospects for Exports of Processed rroaucts; Financial Structure-A Flow-of-Funds Approach (In One Volume) june 29, 1977 Wpstprn Africa RepionF Country Programs Department I FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents mav not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENT Since February 12, 1973 US $ 1.00 = Cedi 1.15 Cedi 1.00 US $ 0.87 FISCAL YEAR July 1 to June 30  FOR OFFCAL USK ONLY TABLE OF CONTENTS Page No. MAP COUNTRY DATA T. EGONOMTI POSTTTON AND PROSPEGTS 1 Summary arnd C onclusions .....- ......... ! Production ...................... 2 Inflatior. ............................... 4 Money and Banking ....................... 8 Pub.14 c Finance ... ................... Balance of Payments .. ................... 14 rospects anu roLLcy ReceUntiLLUoLnUL . .19 II. EZArANSIO'N OF ariUIa PROCESSED EAORTS 2..4 Summary and Recommendations . . .24 Introduction ........ . .25 Trade Patterns . .. .. 25 The Environment in Which Processing Exporters Operate ...... .......27 Existing Export Incentive Program . . 28 Linking Export Performance to Additional Import Capacity ............ . 31 Export Bonus .. . ................. 33 Duty Drawback System . ..33 Special Import Licenses for Export Production .. 33 Processed Goods with Export Potentional. . 34 Marketing and Transport Considierations .. ... 34 Tables ANNEX A Flow-of-Funds Analysis of the Ghanaian Financial System Tables Charts STATISTICAL APPENDIX This report is based on the findings of an economic mission which visited Ghana in March/April 1976. The mission comprised Messrs. Rendrik T. Kcppenn. Robert B. Myers. John P. Sareent (Bank) and John C. Dawson (Consultant). The report was updated following a uiQ4t tn Qhnnn Ihv Mr Vninen in AIiG11Qt 1Q7- snd inrlidp. infnrmq- w~~~ - ~-~- J ~- _rr- -- -et ----- ----_____ tion collected by a recent IMF mission. This document has a restricted distribution and may be used by recipients only in the performance of their officil duti. Its contents may not otherwise be adiscio witnout wor udlk *-utun-rz-un .   'T C) G 0 _E- i7 q 0 I b E U LU Z
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j   Page 1 of 2 pages COUNTRY DATA - GHANA POP- Ti-~~~~~~~~~~~~~lFCT AREA 2 Z PbZ UL N DENSITY 238,500 km million (mid-1975) 9.9 million 41 per km2 Rate of Growth: 2.7% (from 1970 to 1975) POPLTLATION CH.ARACTERTSTICS (1Q75) HEALTH (1971) Crude Birth Rate (per 1,000) 48.8 Population per physician 12,390 Crude Death Rate (per 1,000) 21.9 Population per hospital bed 780 Infant Mortas? y (per 1,000 live births) INCOME DISTRIBUTION DISTRIBUTION OF LAND OWNERSHIP 7, of national income, highest quintile .. % owned by top 10% of owners lowest quintile .% owned by smallest 10% of owners ACCESS TO PIPED WATER ACCESS TO ELECTRICITY 7, of population - urban .. % of population - urban - rural .. - rural. NUTRITION (1969-71 Avg.) EDUCATION (L97) Calorie intake as 7. of requirements 101 Adult literacy rate % Per capita protein intake 49 Primary school enrollment % 56 1/ GNP PER CAPITA in 1975 US $460 GROSS NATIONAL PRODUCT IN 1974 ANNUAL RATE OF GROWTH (7/. constant prices) US $ Mln. % 1967-70 1970-74 1974 GNP at Market Pr4;es 4,613 100.0 4.0 3.5 4.4 Gross Domestic investment 529 11.5 16.2 2.4 49.3 Gross National Saving 458 9.9 38.0 0.2 - 19.5 Current Account Balance - 172 3.7 Exports of Goods. NFS 742 16.1 1.6 - 2.2 - 22.3 Imports of Goods, NFS 915 19.8 1.5 - 0.5 28.5 OUTPLUr, LABOR FORCE AND PRODUCTIVITY IN 1970 2/ Value Added Labor Force- V. A. Per Worker US S Mln- . Mln % US I/ Agriculture 903 46 1.780 54 507 86 Industry 350 18 .500 15 700 118 Services 697 36 .850 26 820 139 Unallocated . .170 5 Total/Average iU 100.0 3.300 100.0 591 1Ju.L GOVERNMENT FINANCE General Government Central Government f rl-0l.J I. of bG. ( Cedi M7.) 7b ot UDY 197 197 196 -7 1974/75 1974 1967 -7 Current Receipts 806 17.3 17.3 Current Expenditure __875 18.8 Lk. Current Surplus - 69 -1.5 0.7 Capital Expenditures 212 4.5 4.3 External Assistance (net) 1 0 .6 1/ The Per Capita GNP estimate is at average 1973-75 market prices, calculated by the same conversion technique as used in the World Bank Atlas. All other conversions to dollars in this table are at the average exchange rate prevailingg during the period covered.. 2/ Total labor force; unemployed are allocated to sector of their normal occupation. "Unallocated" consists mainly of unemployed workers seeking their first job. not available not apolicable  Page 2 of 2 pages COUNTRY DATA - GHANA MONEY, REDIT and PRICES 1970 1971 1972 1973 1974 1975 (Million Cedisoutstanding end period) Money and Quasi Money 427 474 666 794 1,005 1,386 Bank Credit to Public Sector 385 434 548 521 860 1,129 Bank Credit to Private Sector 126 175 174 187 184 298 (Percentages or Index Numbers) Money and Quasi Money as % of GDP 18.9 19.0 23.7 22.7 21.6 General Price Index (1963 = 100) 188.5 206.0 226.0 266.4 315.3 408.9 Annual percentage changes in: General Pri. Index 3.7 9.3 9.7 17.9 18.4 29.7 Bank credit to nublic Sector 6.9 12.7 26.3 - 4.9 65.1 31.3 Bank credit to Private Sector 37.8 38.9 - 0.6 7.5 - 1.6 62.0 BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1970-75) 1974 1975 1976 US $ Mln % (Millions US $) Cocoa 358 67 Exports of Goods, NFS 742 869 852 Timber 62 11 Imports of Goods, NFS 915 879 931 Gold 52 10 Resource Gap (deficit = -) - -1 1 - 79 Intereqt Payments (net) .. .. . All other commodities 64 12 Workers' Remittances Total 536 100 o Other Factor Payments (net) - 27 - 36 - 44 Net Transfers 29 45 34 EXTER, AL DEBT. DECEMBER 31. 1975 Balance on Current Account -T7 2T US $ Mln Direct Foreign Investment 10 71 13 Net MLT Borrowing - 2 22 4 Public Debt, incl. guaranteed 603 Disbursement .. .. t= Non-Guaranteed Privare npht Amortizat!o:)!. . . .. . Total outstanding & Disbursed 603 Subtotal 8 93 17 ' / Capital Grants .. .. .. DEBT SERVICE RATIO for 975- Other Capital (net) 102 -121 26 % Other items n.e.i 30 30 - 9 Increase in Reserves (+) -91 0 -55 Public Debt, incl. guaranteed 3.3 Non-Guaranteed Private Debt Gross Reserves (end year) 94 150 104 Total outstanding & Disbursed 3T Net Reserves (end year) .. RATE OF EXCHANGE IBRD/IDA LENDING,(May 1977) (Million US$): Since Feb. 1973 IBRD IDA US$ 1.00 =