The unfavourable global economic situation that initially emerged in Asia in 1998 persisted in large measure in 1999.
Although some countries that experienced financial crisis in 1998 began to record recoveries, countries that produce primary products suffered major financial losses as prices of their products plummeted. Of particular concern to Ghana, were the declines in prices of cocoa and gold.
While the world price of gold recorded some recovery in the third quarter of the year, cocoa price continued its downward trend throughout the year, such that by the end of the year, the price was about 60 per cent of that prevailing at the end of 1998.
The recovery in world price of crude oil compounded the financial difficulties of non-oil producing countries including Ghana.
