Business Report

The Country s and Region s Financial HealthEconomic IndicatorsEconomic indicators show that as a developing region , Ghana has a favorable scotch and fiscal performance especially comp atomic number 18d to the former(a) countries in the piece . The gross domestic help help product of the rude was estimated to be 59 .15 billion for 2006 which amounts to 2600 GDP per capita . These figures showed that in that abide by was a healthy growth of 5 .7 in that yr (CIA , 2007Other important factors that must be considered before devising an enthronement decision in the country atomic number 18 spirited permute , interest and fanfare order which constitute been adversely touch by the increasing prices of petrolImport and ExportsThe country earns foreign alter mainly from export of florid and cocoa (CIA , 2007 ) and the increasing prices have endure to a lot of growth in the country (EDC , 2006 . Its major(ip) imports include capital goods and petroleum (CIA , 2007 . This has an obvious way expose on the cost of production within the country . in like manner , the government supports industrial growth through inunct subsidies and early(a) such measures . Such measures put a lot of match of Ghana s budget deficit . Therefore in ossification with its fiscal policy of reducing budgetary deficit and domestic debt , there has been a recent reduction in petroleum subsidies (EDC 2006Stock MarketGhana has one stock transfer called the Ghana Stock trade in which has 22 listed companies by the end of the 1990 s which are of mainly of flamboyant , cocoa , banking and brewing industry . However , market proceedments are mainly determined by the Ashanti Goldfield stocksLocal Exchange Rates and TrendsThe up-to-dateness of Ghana is called Ceti (GTC . Till the early 1980 s the exchange rate of th e seat was artificially maintained . But o! nce this policy was abolished and the metal(prenominal) was devalued and floated its value began to decrease significantly .

In 1995 , a policy to use exchange rate to control prominence was adopted which lead to considerable intervention in the exchange rate market . The exchange place continued to last upwards until the end of the 90 s . However , since the tightening of the financial and fiscal policies , lower debt service payments and lower fanfare evaluate the exchange order have become quite comfort in the past five years (EIU , 2006Figure SEQ Figure \ Arabic 1 : Cetis per US dollar (Source CIA Fa ct book 2007Currency lead or Repatriation Issues to Be AddressedWith the proactive efforts to bring down inflation rate to a single digit figure by the end of 2007 (Coutsoukis , 2004 , policy makers have again adopted the plan of using exchange grade to control inflation by using donor aid and remittances to buy Cetis to control up-to-dateness supply Thus , even though , the exchange rates are stabilizing in nominal terms the positive exchange rate increased by 11 .5 in 2005 . Therefore , one has to consider whether the policy will be able to sustain the stability in the exchange rates in the future (EIU , 2006Market AnalysisWith the increasing global energy demands there has been...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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