Trade records $4.2 billion deficit

Ghana's total merchandise exports amounted to US$13.5 billion in 2012, recording a growth of 5.7 percent while total merchandise imports totaled US$17.7 billion in 2012, representing an increase of 12.1 percent over the 2011 figure.

These developments resulted in a trade deficit of US$4.2 billion in 2012 compared to US$3.1 billion in 2011.

Of the exports, gold exports were US$5.6 billion, cocoa beans and products, US$2.8 billion and crude oil exports US$3 billion.

Non-oil imports grew by 13.9 percent to US$14.4 billion while oil imports grew moderately by 5 percent to US$3.3. billion.

The current account deficit was estimated at US$4.9 billion in 2012 compared to US$3.5 billion in 2011 driven mainly by a deterioration in the trade balance.

The country's capital and financial account recorded lower net inflows of US$3.1 billion in 2012 compared to US$4.5 billion in 2011. This was explained by a 67.5 percent decline in capital transfers and a 27 percent decline in the financial account.

In 2012, there were net outflows in short-term capital of US$1.4 billion. However, portfolio investments (net) increased from US$117 million in 2011 to US$1.1 billion in 2012.

The overall balance of payments therefore recorded a deficit of US$1.2 billion in 2012 reversing the surplus of US$546:5 million in 2011.

Also, gross international reserves (GIR) at the end of 2012 was US$5.4 billion (3 months import cover) compared to US$5.5 billion in 2011.

The GIR rose to US$5.5 billion (3.1 months import cover) at the end of January 2013.

Private inward transfers through the banks amounted to US$18.7 billion in 2012, representing a 4.9 percent growth over 2011.

Out of the total, US$1.8 billion accrued to individuals, compared to US$1.9 billion in 2011.

Stability was restored in the foreign exchange market during the second half of 2012, following increased volatility in the first half year.

The cedi depreciated by 17.2 percent between January and June but remained broadly stable during the second half, depreciating by only 0.3 percent.

The cumulative depreciation for the year therefore was 17.5 percent compared to 5 percent depreciation in 2011.

In real effective terms, both trade and foreign exchange weighted exchange rate developments reflected cumulative depreciation rates of 14.3 percent and 18.4 percent respectively.