The Ghanaian economy has experienced steady expansion over the past decade, though growth remains vulnerable to global commodity price shocks. In 2021, the country's primary export destinations were Switzerland, India, China, and the UK. Its primary sources of imports were China, the UK, the USA, and India. In 2021, the value of Ghana's exports to the UK was £680m, while the value of its imports from the UK was £290m. Ghana also receives official development assistance from the UK. In 2021, the UK government's total official development assistance (ODA) was £11.4bn, reflecting a spending level of 0.5% of gross national income (GNI). Ghana was among the top African recipients, receiving £95m.
Ghana's Minister of Finance announced plans to gradually reduce corporate tax rates, which are currently among the highest in West Africa. He argued that lowering these taxes would stimulate domestic investment, attract international companies, and accelerate national economic growth.
Using information from the stimulus material, evaluate whether a reduction in corporate tax rates in Ghana would benefit the UK economy.
