It is also forecasting a 21.5 percent increase in cocoa production in 2017 despite low price on the world market. BMI had earlier forecasted a growth rate of 15.2 percent for cocoa production in 2017.
According to its latest report on Ghana’s economic outlook, “supportive weather conditions have offered further tailwinds to economic activity.”
It emphasized that “second quarter data reaffirms our view that a dramatic increase in oil production will facilitate robust real GDP growth in 2017 and 2018, making Ghana an outperformer across major markets in SSA over the coming quarters.”
It added “rising cocoa production will also support exports in 2017 due to excellent growing weather in the 2016/2017 harvest although we expect that harvests will be less productive in subsequent years.”
Ghana has been battling with low price of cocoa on the world market, which is expected to affect its foreign exchange earnings. Presently, cocoa which the country is the second largest producer in the world is going for US$2,108.
Despite the low price of the commodity, the Government of Ghana maintained the producer price of cocoa for the 2017/2018 season at GH¢7,600 per tonne, same from the 2016/2017 crop season.
BMI noted that cocoa together with oil and gold will contribute significantly to the Ghanaian economy in 2017.
Whilst cocoa constitutes 30.5 percent of the nation’s exports commodities, oil and gas constitute 15.2 percent of exports commodities.
According to the World Bank, Ghana is expected to grow at a rate of 6.1 percent for 2017, placing it at a joint 5th position with Burkina Faso in Sub Saharan Africa.
Its Global Economic Prospects Report stated that Ethiopia was expected to grow very high in Sub Saharan Africa with a Gross Domestic Product of 8.3 percent this year.
The report added that Ghana is expected to grow at a high 7.8 percent in 2018 and 6.2 percent in 2019.
“Growth is expected to strengthen in Ghana as increased oil and gas production boosts exports and domestic electricity production”, the report explained.
Meanwhile, sub-Saharan Africa growth is forecast to pick up to 2.6 percent in 2017 and to 3.2 percent in 2018, predicated on moderately rising commodity prices and reforms to tackle macroeconomic imbalances.