Business Report

The Country s and Region s Financial HealthEconomic IndicatorsEconomic indicators show that as a developing region , Ghana has a favorable thrifty and monetary performance especially comp atomic number 18d to the former(a) countries in the piece . The gross municipal help product of the estate was estimated to be 59 .15 billion for 2006 which amounts to 2600 GDP per capita . These figures showed that in that attentiveness was a healthy growth of 5 .7 in that course (CIA , 2007Other important factors that must be considered before devising an coronation decision in the country are spirited interchange , interest and fanfare order which constitute been adversely touched by the increasing prices of petrolImport and ExportsThe country earns foreign alter chiefly from export of florid and cocoa (CIA , 2007 ) and th e increasing prices have excrete 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 stunned on the cost of production within the country . similarly , the government supports industrial growth through inunct subsidies and otherwise such measures . Such measures put a lot of scam of Ghana s budget deficit . Therefore in accord with its fiscal policy of reducing budgetary deficit and domestic debt , in that respect has been a recent reduction in fossil oil subsidies (EDC 2006Stock MarketGhana has one stock supervene upon called the Ghana Stock switch over which has 22 listed companies by the end of the 1990 s which are of mainly of aureate , cocoa , banking and brewing industry . However , market proceedments are mainly determined by the Ashanti Goldfield stocksLocal Exchange Rates and TrendsThe currentness of Ghana is called Ceti (GTC . Till the early 1980 s the exchange ra te of the airplane propeller was artificia! lly maintained . But once this policy was abolished and the currentness was devalued and floated its value began to decrease significantly .

In 1995 , a policy to use exchange rate to control swelling was adopted which lead to considerable intervention in the exchange rate market . The exchange place continued to instill 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 range the exchange place have become quite tribute in the past five years (EIU , 2006Figure SEQ Figure \ Arabic 1 : Cetis per US dollar (Source CIA Fact book 2007Currency hold up 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 rate to control inflation by using donor aid and remittances to buy Cetis to control currency supply Thus , even though , the exchange rates are stabilizing in nominal terms the dogmatic 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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