CEPA to launch two books on state of Ghana’s economy

The Centre for Economic Policy Analysis (CEPA) will on November 29, 2011 launch two publications on the state of the Ghanaian economy, officials have said.

The books review the state of the Ghanaian economy as well as give the economic outlook for 2012.

The publications, according to CEPA in an email to ghanabusinessnews.com are “Ghana Economic Review and Outlook 2012” and “A Companion Volume: The State of the Ghanaian Economy (Marking the first full year in the oil era).

According to CEPA, policymakers face two key tasks as Ghana enters into the oil era. “The first is how to effectively absorb the foreign exchange resources in order to address infrastructural deficiencies and institutional weaknesses in the economy – This is what is needed to promote accelerated growth and job creation.”

The second task, the policy think-tank said relates to the effective management of the foreign exchange resources in order to avoid the so-called Dutch Disease.

It notes that experiences elsewhere have shown that the discovery of oil does not always come as a blessing to a country.

“The oil boom can move productive resources labour, land, and capital away from the non-oil sector and into the oil sector, thereby causing production declines in the non-oil sector,” the statement said.

CEPA warns that foreign exchange earnings from the export of oil could also lead to severe loss in international price competitiveness of goods produced in Ghana. “Profits become squeezed, and in some cases production becomes totally unprofitable, causing enterprises to shut down with loss of jobs.”

The Think Tank said the publications provide an appraisal of the financial health of the economy and developments in the domestic bonds market with the assessment of developments in the implementation of the annual budget and fiscal operations and the Bank of Ghana’s inflation targeting regime, interest rates, and credit conditions in the banking system as well as external trade and payments.

The documents will be on sale at the launch at the British Council in Accra 9:00 am and at its Erasmus Library.

By Ekow Quandzie

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