Ghana's trade surplus hits $1.81 billion in first half of 2024 - BoG report

The country recorded a trade surplus of $1.81 billion in the first half of the year, higher than the surplus of $1.60 billion recorded in the corresponding period of 2023, the Bank of Ghana has revealed.

It said the improved trade surplus resulted from a higher increase in exports relative to imports.

The BoG stated in its Mon­etary Policy Report for the first half of 2024 that total exports in the period under review increased by $1.09 billion (13.4 percent) to $9.23 billion, mainly on the back of strong growth in gold and crude oil exports.

It indicated that the value of gold exports increased by 46.4 percent to $5.04 billion, driven by both volume and price increases.

“The volume of gold exports increased by 28.9 percent to 2.4 million ounces, driven largely by higher output from small-scale mining, while realised prices of gold increased by 13.6 percent to $2,094.5 per fine ounce,” the report stated.

Additionally, it noted that earnings from crude oil exports reached $1.98 billion, from $1.66 billion in the same period last year.

“Receipts from cocoa exports, both beans and products, declined by 47.4 percent, from $1.454 billion in the first half of 2023, to $760 million in the first half of 2024. The sharp drop in the value of cocoa exports reflected the challenges in the cocoa sector, including extreme weather condi­tions, diseases and smuggling,” the BoG added.

It also said the value of “other exports” (including non-traditional exports) went down by 8.7 per cent to $1.5 billion.

The Monetary Policy Report revealed that total imports bill rose by 13.5 percent to $7.42 billion in the first half of the year, driven by both oil and non-oil imports, add­ing that Oil imports increased by 6.1 percent to $2.30 billion, with non-oil imports increasing by 17.2 percent to $5.12 billion.

Consequently, the BoG said current account provisionally for the first half of the year showed a surplus of $1.28 billion, repre­senting a 48.2 percent increase over the surplus of $863.04 million recorded during the same period in 2023, due to largely improved trade surplus, and higher remittance inflows.

“Net remittance flows for the review period increased by 33.2 percent to $2.69 billion. Net income payment and payment for services, however, increased by 20.1 percent and 13.6 percent, respectively, to $1.23 billion and $1.98 billion,” the report said.

Moreover, it noted the capital and financial accounts in the cap­ital and financial account, net out­flows reduced from $1.04 billion in the first half of 2023 to $368 million in the first half of 2024.

The lower capital outflows recorded is due to higher govern­ment loan disbursements, reduced amortisations, and lower portfolio outflows.

“Other capital”, includ­ing private capital, recorded a net outflow of $1.61 billion, compared to an outflow of $1.13 billion for the same time in 2023.

The Monetary Policy Report further disclosed that the current account surplus, together with the reduced capital outflows, resulted in an overall Balance of Payments (BOP) surplus of $942.3 million in the first half of 2024, compared to a deficit of $341.0 million for the same period in 2023.

On the country’s Gross Inter­national Reserves (GIR) at the end of June 2024 stood at $6.87 billion, equivalent to 3.1 months of import cover.

Meanwhile, the report indicated that GIR (excluding encumbered and petroleum assets) was $4.52 billion and that compared with a GIR stock of $5.92 billion and GIR (excluding encumbered and petroleum assets) of $3.68 billion at the end of December 2023.