Ghana’s Balance of Payment recovers from $586m deficit to $84.7m surplus in Q1 2024
Ghana has recorded a remarkable turnaround in its balance of payments (BoP), achieving a surplus of $84.74 million in the first quarter of 2024, a significant improvement from the $586.99 million deficit registered in the same period of 2023. This shift was underpinned by a robust trade balance surplus and a notable current account surplus, as reported by the Bank of Ghana (BoG).
A trade balance surplus of $774 million and a current account surplus of $372 million were instrumental in delivering the BoP surplus. However, the balance of trade surplus for the first four months of 2024 stood at $744.3 million, considerably lower than the $1.39 billion surplus recorded in the corresponding period of the previous year. The decline in the trade surplus reflects the dynamic nature of Ghana’s trade environment, influenced by various export and import activities.
Total exports saw a 4.9 percent increase, reaching $5.83 billion, primarily driven by substantial growth in gold exports and a modest rise in crude oil exports. Gold export earnings surged by 37.0 percent to $2.97 billion, buoyed by higher volumes from small-scale production. In comparison, crude oil export values rose by 9.4 percent to $1.27 billion, benefiting from both increased volumes and prices.
Conversely, exports of cocoa, encompassing both beans and products, plummeted by 49.0 percent to $599.3 million. Other exports, including non-traditional exports, declined by 6.0 percent to $981.8 million, highlighting the variability in Ghana’s export performance across different sectors.
On the import side, total imports escalated by 22.2 percent to $5.08 billion, driven mainly by a 31.2 percent increase in non-oil imports, which reached $3.53 billion. Oil imports saw a modest rise of 5.6 percent, totaling $1.55 billion. This surge in imports underscores the rising demand for goods in the Ghanaian economy.
Provisional data for the first quarter of 2024 indicated a current account surplus of $372.12 million, a significant decline of 40.8 percent from the $629.01 million surplus recorded in the first quarter of 2023. This reduction was primarily due to higher imports and increased income payments.
Net income payments rose to $727 million, up from $508 million in the previous year. However, remittance inflows saw a sharp increase, reaching $1.44 billion compared to $980 million in the same period last year.
The capital and financial account recorded a net outflow of $113 million, significantly lower than the $998.40 million outflow experienced in the first quarter of 2023. This improvement was largely attributed to significant inflows from the International Monetary Fund (IMF) and World Bank, coupled with improved foreign direct investment (FDI) flows into the economy.
