Trade balance grows by 29% yoy to hit $2.01bn at end-August 2023 – BoG data
In the recent economic update from the Bank of Ghana (BoG), Ghana’s trade balance displayed noteworthy growth, marking a positive turn of events in the country’s economic landscape. According to the BoG’s figures, Ghana’s trade balance saw a remarkable increase of US$231.9 million between the months of June and August 2023. This surge represents a substantial 13% expansion from the trade balance of US$1.78 billion recorded in July 2023.
This latest development brings Ghana’s total trade balance to an impressive US$2.01 billion as of August 2023, a figure that accounts for 2.6% of the country’s Gross Domestic Product (GDP). The year-on-year analysis paints an even more encouraging picture, with this newly minted trade balance showcasing a robust 29 percentage point increase from the US$1.56 billion reported in August 2022.
While the overall trade balance displays encouraging growth, it’s essential to dissect the components of Ghana’s exports. Currently, the nation’s total exports stand at US$10.76 billion, reflecting an uptick from the US$8.16 billion observed in June 2023. However, it’s worth noting that this figure still represents a modest 9% decrease when compared to the US$11.81 billion recorded in August 2022.
Gold continues to hold its position as the most significant contributor to Ghana’s exports, contributing a substantial $4.67 billion in exports as of August 2023, a noticeable increase from the $3.46 billion recorded in June 2023. Following closely are crude oil exports, which totaled $2.37 billion in August 2023, marking a substantial surge from the $1.66 billion reported in June 2023. The cocoa sector rounds out the top three, contributing $1.60 billion, up from $1.45 billion recorded earlier in the year.
In terms of Ghana’s balance of payments, challenges persist. As of June 30, the country continued to grapple with a balance-of-payments deficit, which amounted to $341.8 million, equivalent to approximately 0.4% of GDP. The Capital and Financial Account Balance also remained in deficit territory, recording a figure of $907.2 million.
Despite these hurdles, the nation’s international reserves are of notable interest. Gross International Reserves were reported at $5.09 billion in August 2023, with Net International Reserves totaling US$2.20 billion.
These economic indicators shed light on Ghana’s evolving trade dynamics, export sectors, and the ongoing challenges in maintaining a balanced balance of payments. As Ghana navigates these economic waters, these figures will undoubtedly be closely watched by investors, policymakers, and economic analysts alike.
