Gold, oil exports boost Ghana’s economy amid trade decline

Ghana’s trade balance saw a significant decline in surplus, from $1.39 billion to $744.3 million, in the first four months of the year.

Despite a 4.9% increase in total exports, driven by gold and crude oil, cocoa and non-traditional exports saw significant drops.

Total imports rose by 22.2%, leading to a lower current account surplus of $372.12 million, a 40.8% decline from last year.

However, remittances inflows increased sharply, and capital outflows reduced due to IMF and World Bank inflows

Earnings from gold exports increased by 37.0 percent to US$2.97 billion, due to higher volumes of exports from small-scale gold production. The value of crude oil exports, in comparison, increased by 9.4 percent to US$1.27 billion, on the back of both volume and price increases. Exports of cocoa, both beans and products, dropped by 49.0 percent to US$599.3 million.

Other exports, including non-traditional exports, also decreased by 6.0 percent to US$981.8 million. Total imports increased by 22.2 percent to US$5.08 billion, driven mainly by non-oil imports which went up by 31.2 percent to US$3.53 billion, while oil imports increased by 5.6 percent to US$1.55 billion.

Provisional data for the first quarter of the year resulted in a current account surplus of US$372.12 million. This represented a 40.8 percent decline from the surplus of US$629.01 million recorded in the first quarter of 2023. The lower surplus was driven mainly by higher imports, and increased income payments. Net income payment was US$727 million for the first quarter of 2024, compared to net income payment of US$508 million in 2023. Remittances inflows increased sharply to US$1.44 billion, compared with net inflows of US$980 million over the same comparative period.

The Capital and Financial account recorded a net outflow of US$113 million, lower than a net outflow of US$998.40 million recorded in the same period in 2023. The reduced capital outflows were largely driven by significant inflows from the IMF and World Bank, as well as improved FDI flows to the economy