Ghana for the period between December 2019 and December 2020, recorded a positive trade balance of $2 billion.
The recorded positive trade balance for 2020 represents a decline in trade surplus when compared to the $2.2 billion trade surplus recorded end-December 2019.
The positive trade balance according to the Bank of Ghana in its January 2021 Summary of Economic and Financial Data, represents a decline from 3.4 per cent of Gross Domestic Product (GDP) to 3 per cent of GDP.
Of the positive trade balance – trade surplus – total imports for the period under review amounted to $12.4 billion, with oil imports accounting for $1.9 billion and non-oil imports accounting for the remaining $10.5 billion.
When compared to figures from 2019, both oil and non-oil imports declined. The decline in imports can be partially attributed to the closure of borders of the country’s trading partners on the back of the Covid-19 pandemic.
Total exports for the period under review also declined from a total amount of $15.6 billion end-2019 to $14.4 billion end-2020.
The fall in total exports for 2020 is attributed to the decline in demand for oil globally, as revenue from oil exports declined by a little over $1.5 billion.
Oil exports for end-2019 stood at $4.49 billion but declined to $2.91 billion at end-2020.
Gold and cocoa exports on the other hand increased, with gold exports earning Ghana some $6.8 billion end-2020 as compared to the $6.2 billion earned in 2019. Cocoa also earned Ghana some $2.3 billion end-2020 as compared to some $2.2 billion earned for 2019.
Gross International Reserves
Gross International Reserves (GIR) between the period of end-December 2019 and end-December 2020, increased by a little over $200 million.
Reserves held by the Bank of Ghana at end-2020 stood at $8.62 billion as against some $8.42 billion reserves held at end-2019.
The BoG’s current GIR provides the country with 4.1 months import cover.
