China's Economic Slowdown likely To Affect Ghana
The current economic slowdown in China seems far away but its effect on the Ghanaian economy could be much closer.
China’s economic slowdown could result in a substantial decline in demand for commodities like gold, cocoa and crude oil, which are the main revenue earners for Ghana.
Most industries in China make the list for being one of the biggest buyers of these commodities, and hence the decline, will affect demand for these commodities as well as some other non-traditional exports from Ghana to the Chinese market.
This could further worsen Ghana’s revenue position, which has been badly affected by the decline in commodity prices.
This could also affect the Ghana cedi, because the country’s dollar earnings might drop, considering the decline in prices and demand of Ghana’s exports.
Meanwhile, Government has indicated it will revise its revenue projections from crude oil exports.
Finance Minister, Seth Terkper, in the supplementary budget revised the crude oil revenue from 4.8 billion Ghana cedis to 1.8 billion Ghana when the price of a barrel of the commodity was 52 dollars.
However with crude oil prices dropping beyond about 40 dollars per barrel, government says the projections have changed.
Disclaimer: The views expressed in this news report do not necessarily reflect the views of the National Development Planning Commission(NDPC)