Ghana's trade surplus widened in first half of 2024 as gold exports jump

Ghana’s trade surplus widened in the first half as an increase in revenue from gold exports limited the impact of a plunge in cocoa income.

The favorable trade gap grew 12.5% from a year ago to $1.8 billion, Bank of Ghana said in a summary of economic and financial data on its website. Total exports increased 13.6% to $9.2 billion, spurred by a 47% surge in revenue from gold shipments to $5 billion. Total imports rose to $7.4 billion from $6.5 billion.

A slump in cocoa production in the world’s second-biggest grower of the chocolate-making ingredient drove export revenue 48% lower to $760 million in the first six months. A combination of bad weather, disease and a shortage of fertilizer has curbed output in Ghana and top producer Ivory Coast.

Ghana’s harvest for the season that ends in September may total 501,000 tons from 654,000 tons a year earlier, the International Cocoa Organization forecasts.

Cocoa revenue drop has weighed on the performance of the cedi to the dollar this year. The local currency has weakened by 23% so far in 2024 compared with a depreciation of 10% for the same period in 2023.

Below are other key economic and financial indicators in the central bank report:

Oil exports in the first half rose 17% to $2 billion y/y.

Current account surplus widened to $1.3 billion from $863 million over the period; overall balance of payments improved to a surplus of $942 million from a deficit of $341 million.

Gross international reserves rose to $6.9 billion at end-June from $5.3 billion y/y.

Public debt increased to 742 billion cedis from 583 billion cedis.

Debt as a ratio of gross domestic product rose to 70.6% from 69.3%.

Banks’ loans grew to 84.5 billion cedis at the end of June from 73.1 billion cedis y/y.

Loans growth quickened slightly to 15.5% from 15.4%.

Capital adequacy rose to 14.3% from 14.2%

Non-performing loans increased to 24.1% from 18.7%.

Monthly mobile-money transactions totaled 224 billion cedis in June from 149.4 billion cedis in June 2023