Ghana records impressive trade surplus of $1.77bn in H1 2023, marking 2.4% of GDP
In a remarkable display of economic resilience, Ghana’s trade surplus surged to $1.77 billion in the first half of 2023, representing an impressive 2.4% of Gross Domestic Product (GDP). The latest data, as reported by the Bank of Ghana in their July 2023 Summary of Economic and Financial Data, highlights a substantial growth from the $1.47 billion (2.0% of GDP) recorded during the same period last year.
The West African nation’s trade performance was bolstered by a notable increase in total exports, which reached $8.17 billion by June 2023, while total imports stood at $6.40 billion for the same period. Notably, the value of gold exports continued to dominate, surging to $3.45 billion in June 2023, surpassing the $3.03 billion recorded during the comparative period in the previous year.
Another vital contributor to Ghana’s export prowess was the resilient performance of cocoa proceeds, which amounted to $1.48 billion in the first six months of 2023, compared to $1.41 billion a year ago. However, a minor dip in crude oil exports was observed, standing at $1.66 billion in June 2023, in contrast to $2.83 billion in June 2022.
Moreover, Ghana’s Balance of Payment showed a remarkable improvement, revealing a mere deficit of $107.8 million, approximately 0.1% of GDP, at the end of June 2023. This is a notable decrease from the $2.49 billion deficit recorded during the same period in 2022, signifying a positive trend in the country’s fiscal stability.
While the current account balance remains positive, amounting to $849.2 million (approximately 1.1% of GDP) in April 2023, the Capital and Financial Account Balance stood at a deficit of $897.3 million in June 2023, primarily driven by net portfolio investments outflow.
Amidst these encouraging indicators, concerns arise over the nation’s Gross International Reserves, which stood at $5.34 billion in June 2023, representing approximately 2.5 months of import cover. This figure reflects a notable decrease from the $7.68 billion recorded in June 2022, warranting attention to ensure sufficient cover for imports in the coming months.
Ghana’s economy, buoyed by a strong trade surplus and an improved Balance of Payment, exhibits resilience in the face of challenges. However, policymakers must remain vigilant and proactive in addressing the capital account deficit and stabilizing international reserves to sustain the country’s economic growth and stability in the long run.
