Ghana's trade deficit drop in first half of the year

Accra, Aug. 26, GNA - Ghana's trade balance amounted to a deficit of US$955.8 million, for the first six months of 2009, compared to a deficit of US$2,155.0 million recorded at the end of June 2008. Presenting the mid-year review and supplementary budget to Parliament, on Tuesday, Finance Minister Dr Kwabena Duffuor said total exports amounted to US$3,003.8 million, compared with US$2,845.8 million during the corresponding period of 2008.

Receipts from cocoa beans and products amounted to US$1,061.0 million, an increase of 16.6 percent over what was recorded during the corresponding period of 2008.

Similarly, total receipts from gold exports for the first half of the year amounted to US$1,213.9 million, indicating a marginal increase of 1.2 percent over US$1,199.2 million for the same period of 2008. The growth in gold exports was on the back of a marginal increase of 2.0 percent in volume, on year-on-year basis, to 1,351,798 fine ounces.

Dr Duffuor said total merchandised imports amounted to US$3,872.4 million for the first half of 2009 compared to US$5,000.9 million in 2008, indicating a decline of 22.5 percent.

The value of oil imports during the first half of 2009 amounted to US$449.6 million compared with US$1,326.5 million during the first half of 2008.

The value of total non-oil imports for the first half of the year 2009 amounted to US$3,425.8 million compared with US$3,674.4 million for the same period in 2008, representing a decline of 6.8 percent. The Minister said remittances to private individuals amounted to US$728.3 million, compared with US$822.8 million for the same period in 2008 due to the effects of the global credit crunch.

The overall current account registered a surplus of US$125.9 million, compared to a deficit of US$1,449.0 million registered during the same period in 2008.

By the end of June 2009, gross international reserves totalled US$1,705.2 million, enough to cover 1.9 months of imports of goods and services and almost reaching the target of 2.0 months of imports cover set for 2009.

Dr Duffuor said despite the very difficult economic situation inherited in January 2009, the government had achieved all the notable feats within six months.

These notable achievements have come about not by accident but by the prudent macroeconomic policies being pursued by Government, he said.