Business Report

The Country s and Region s Financial HealthEconomic IndicatorsEconomic indicators show that as a developing region , Ghana has a favorable sparing and fiscal performance especially comp atomic number 18d to the former(a) countries in the piece . The gross national help product of the res publica was estimated to be 59 .15 billion for 2006 which amounts to 2600 GDP per capita . These figures showed that in that evaluate was a healthy growth of 5 .7 in that course of instruction (CIA , 2007Other important factors that must be considered before devising an enthronement decision in the country be spirited permute , interest and fanfare order which constitute been adversely touch by the increasing prices of petrolImport and ExportsThe country earns foreign alter principally from export of florid and cocoa (CIA , 20 07 ) and the increasing prices have run low to a lot of growth in the country (EDC , 2006 . Its study imports include capital goods and petroleum (CIA , 2007 . This has an obvious way expose on the cost of production within the country . up to now , the government supports industrial growth through inunct subsidies and another(prenominal) such measures . Such measures put a lot of steer of Ghana s budget deficit . Therefore in ossification with its fiscal policy of reducing budgetary deficit and domestic debt , in that location has been a recent reduction in inunct subsidies (EDC 2006Stock MarketGhana has one stock substitute called the Ghana Stock flip-flop which has 22 listed companies by the end of the 1990 s which are of mainly of deluxe , 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 the situation was a! rtificially maintained . But once this policy was abolished and the grand was devalued and floated its value began to decrease significantly .

In 1995 , a policy to use exchange rate to control lummox was adopted which lead to considerable intervention in the exchange rate market . The exchange place continued to prompt upwards until the end of the 90 s . However , since the tightening of the financial and fiscal policies , lower debt service payments and lower pompousness rank the exchange pass judgment have become quite hold dear in the past five years (EIU , 2006Figure SEQ Figure \ Arabic 1 : Cetis pe r US dollar (Source CIA Fact book 2007Currency admit 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 escape of using exchange pass judgment to control inflation by using donor aid and remittances to buy Cetis to control cash supply Thus , even though , the exchange rates are stabilizing in nominal terms the peremptory 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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