Ghana is experiencing rising capital inflows in the region according to the World Economic Outlook report released at the just ended annual meeting of governors of financial institutions among its 185 member countries.
It said the country was experiencing the phenomenon because of its increased policy credibility in the region.
The Economic Outlook also highlighted Sub-Saharan African countries benefiting from globalization with an overall growth projected to rise from 5.7 percent in 2006 to 6.1 percent in 2008.
The growth acceleration reflected largely on the coming onstream of new production facilities in oil-exporting countries such as Angola and Nigeria.
According to the report, risks to the forecast were however, titled somewhat to the downside reflecting mainly the possibility of a weaker global out turn, which would weaken demand for African commodity exports and tighten financial constraints, as well risks from domestic political developments in individual countries. It said Sub-Saharan African Countries were enjoying the period of sustained growth since independence.
It put faster growing countries in making substantial progress in reducing poverty rates in the region.
It said the growth success reflected a potent combination of a favourable external environment, sound policy implementation and rising openness of the region's economies.
It continued that due to its massive improvement in the economies, it has attracted rising capital inflows as well as benefiting from some step-up in aid inflows and rising remittances.
The report put oil-producing countries to have made large terms-of-trade gains from recent fuel price increases and international reserves had risen.
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It therefore warned countries producing oil in the region to be careful and spend oil gains in prudent manner without staining domestic absorptive capacity and saving appropriately for future generations.
The report also advised countries in the sub region to be vigilant in avoiding crowding out other productive activities through upward pressure on scarce domestic resources although such increased inflows would provide an important opportunity for poverty reduction.
It again advised countries in the region to build institutions that would help sustain improved macroeconomic management, push through governance and other reforms to strengthen poverty alleviation and develop the infrastructure and business environment to foster the rising productivity and investment needed to sustain high growth.
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