Ghana tops Africa in gold production

The International Monetary Fund (IMF) October 2019 World Economic Outlook Report, has ranked Ghana first in Africa in gold production and sixth, with the United States of America in the world.

Ghana has accrued US$7.4 billion from production of gold between 2016 and 2018.

China is the leading producer of gold in the world with estimated US$13.1 billion earnings, followed by Australia and Russia with production incomes of US$9.3 billion and US$8.5 billion dollar respectively. Kazakhstan was 5th with total gold earnings of US$8.4 billion. Peru, Canada and Brazil were 8th, 9th and 10th respectively with total value of gold earnings of US$6.2 billion, US$6.2 billion and US$5.4 billion respectively.

South Africa was 2nd in Africa but 11th in the world with total gold earnings of US$4.5 billion. Ghana used to be the second largest gold producer in Africa and the 9th largest producer in the world.

According to the report, demand for the precious metal can be classified as industrial, jewelry, and investment and net official purchases by Central Banks and international organizations. More than half of newly mined gold is however used in jewelry.

At the same time, official sector gold holdings are large, accounting for about 30.0 percent of the global stock of gold.

Ghana bagged US$2.9 billion in gold exports, up by 2.7 percent in year-on-year terms in the first half of 2019.

This contributed significantly to the improved trade surplus of US$1.9 billion, representing 2.8 percent of GDP, compared with a surplus of US$1.25 billion (1.9 percent of GDP) recorded for the first half of 2018.

Gold prices significantly recovered in June 2019 to levels last seen in May 2013 after trading at relatively lower prices over the previous three months. The yellow metal rallied 5.9 percent to close at an average of US$1,359.7 per fine ounce as heightened US-China trade tensions and Washington's threat of tariffs on Mexico stoked worries of a global recession and drove investors to seek refuge in safe-haven bullion.

The expected first gold pour of AngloGold Ashanti in December 2019 is expected to increase the export earnings of gold for the country. The company revealed it was on track to produce the first gold ounces at its redeveloped Obuasi mine by the end of December 2019 after resumption of operation early this year.

Economy to grow at 5.6% 2020

Meanwhile, the Ghanaian economy is expected to grow at 5.6 percent next year, lower than the projected 7.5 percent Gross Domestic Product in 2019.

According to the IMF report, this will place it second behind Senegal and Ivory Coast. Senegal and Ivory Coast economies are expected to grow at a rate of 6.8 and 7.3 percent respectively. In 2018, the two countries economies will grow at 6.0 and 7.5 percent respectively.

With respect to inflation, it will hover around 9.3 and 9.2 percent in 2019 and 2020 respectively, the Breton Wood institution report emphasized.

Ghana's economy grew by 6.7 percent year-on-year for the first quarter of 2019, according to the Ghana Statistical Service.

This was compared with 5.4 percent the same period a year ago.

Industry led the pack with growth rate of 8.4 percent followed by services with GDP of 7.2 percent. Agriculture on the other hand grew by a paltry 2.2 percent.