Ghana
How are Ghana doing econimcly
Ghana is currently going through an economic boom; making Ghana one of the top–ten fastest growing economies’ in the world, and the fastest growing economy in Africa. Ghana has a population of 24.3 million, total GDP of 40.71 billion USD which saw a 7.9% growth. As Ghana saw an increase in GDP, it was good for the country because it meant more products were being made which meant more products are being sold. As the GDP increased so did inflation by 13.1%, this meant the price for goods increased which is good for business, because they gain more profit but bad for customers as they have to spend more on products.

As Ghana increased in GDP and inflation, this meant investors had the upper hand in investing in business and seeing that business growth. When a boom occurs there is a cycle which I will explain. As a boom takes places GDP increase, this means more products are being made within that country. Let’s take car manufactures for example; they will be producing more cars because there is a higher demand for that product.
As time goes on inflation will increase which means the prices of goods will increase so products will be more expensive now then it was before, manufactures are producing more products and gaining more profit due to inflation. This as a whole helps the economic, as the government will be taxing business and using the money to help that county. And business will be making more profit which will help them to expand and create more jobs. Inflation is a positive for businesses as they make more profit, but a negative because customers have to spend more money. So this influences investors to invest their money into business, because they know through an economic boom more dividends is shared out to shareholders as customers spend more money.

Ghana Investment Graph

As Ghana go through and economic boom it had a positive effect of business within Ghana. Let’s take Barclays bank for example, in 2011 the Bank reported a profit before tax of GH¢115.4 million, being the highest profit in its history in Ghana. This represents 34.8% increase when compared to the 2010 profit before tax of GH¢85.6 million. This explains that through the boom banks in Ghana had an increase in profit.
This allowed for Barclays bank in Ghana to expand, create more jobs and gives staff higher wages. It also allowed Barclays shareholders to gain a larger divided influencing them to invest even more money into the business.

Barclays Bank of Ghana Annual Report