Ghana's economy said to grow at 5.7%, achieve single digit inflation in 2010

Ghana’s economy is expected grow above 2009 levels of 5% to 5.7% in 2010 and the country plans to attain single digit inflation.

A Reuters report citing the Vice President of Ghana, Mr. John Mahama said the growth is projected on the prospects of the country’s oil production expected to begin this year and the global economic recovery.

Ghana discovered oil in commercial quantities in 2007 and the country holds the largest oil field to be discovered in West Africa in the last 10 to 15 years. The field, the Jubilee oil field holds about 1.8 billion barrels of oil according to Tullow Oil, the majority stakeholders and has 17 wells.

Mr. Mahama was quoted as saying, “We have modestly estimated 5.7% but we should push above the 6 percent mark, especially considering the advent of the oil economy with the significant finds that Ghana has made.”

“I’m sure we should be able to make much better than 6%,” he added.

He told Reuters that Ghana’s economy probably grew 5% last year, adjusted for inflation, largely due to the global downturn which hurt remittances from Ghanaians living abroad and squeezed credit for infrastructure projects and budgetary support.

Mr. Mahama said “We expect that by the end of this year we should be able to bring inflation to single digits,” adding the fiscal deficit should also come down to less than 7% of gross domestic product from just below 11% in 2009. The shortfall was close to 20% in 2008.

Emphasis on the country’s economic march forward has been made on the role the oil will play since its discovery.

The country under the Phase One of the Jubilee Field project expects to produce 120,000 barrels of oil and 120,000 million standard cubic feet of dry gas per day in 2010.

Production would be increased to 240,000 barrels of oil and 240,000 million standard cubic feet of gas per day under the second phase of the Jubilee Field project which is expected to commence in 2013.

By Emmanuel K. Dogbevi