Falling Down of Global Oil Price – An upcoming Headache for Ghana

Ghana is one of the top oil producers throughout the world which exports approximately 105,000 barrels of oil each day. But falling down of global oil price might hurt Ghana economics. On 29th December, honorable president of Ghana John Mahama was said that the decreasing sales of oil could offer major effect on countries infrastructure plans.Oil producer might struggle for executing plans to build schools, hospitals and roads if global oil prices fall again, he added. In fact petroleum exports from Ghana’s offshore jubilee field are main revenue source of the Ghana government. As the other economical sector merely depend upon oil income, but bisecting the crude oil prices have damaged the budget assumption from the month of June. With the major resource of oil production, Ghana might be fallen into financial crisis. Therefore the ruling government had already started talks with the IMF (International Monetary Fund) in order to constant its economy after continual development and rising-falling government spending drove up inflation.
As a party representative of NDC, Mahama wants to take some fruitful steps to retain the profitability of Ghana economy so that his party will come up better for the common election in 2016. But his advisory council was told that further oil price fall could imperil the government development plans. Again he said if this situation continues, then it will affect the Ghanaian revenue. However, the government has a stabilization fund in order to offer an ultimate backup facility for budget financing if oil revenue falls short; but the government needs an approval from the parliament to draw the corresponding fund.

Moreover, the government has projected a budget for the year 2015 i.e. Ghana would earn 4.2 billion Cedis ($ 1.3 billion) from its oil revenues which is 3.1 % of GDP (Gross Domestic Product). Hence president Mahama was very much worried about the restoration of Ghana’s economy.

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