Ghana’s current account deficit will fall from 3.3% to 2.8% this year – IMF

The International Monterey Fund has projected Ghana’s current account deficit to fall from 3.3% to 2.8% this year.

A deficit is a measurement of a country’s trade where the value of goods and services imported exceeds the value of products exported.

The IMF’s latest World Economic Outlook Report reveals that the current account balance will however rise to -4.9% in 2022.

This figure is 0.1% higher than what the Fund forecast in November 2020, but lower than the 3.8% than Fitch Solutions has predicted for 2021.

Although Ghana has recorded some trade surplus in these years, its current account deficit stood at 3.1% and 2.8% in 2018 and 2019 respectively.

Data from the central bank of Ghana showed that the country recorded a trade surplus of US$2.015 billion in 2020. This was equivalent to 3% of Gross Domestic Product.

The data also revealed that total exports was US$14.45 billion, more than total imports which was estimated at US$12.43 billion.

But comparing it to 2019, the country earned US$15.6 billion from exports, as against US$13.4 billion of imports.

Though the coronavirus pandemic had led to a partial lockdown and restrictions in most economies, the nation benefited from diversified exports last year as oil, gold and cocoa raked in more revenue for the country.

Total imports for January and February 2021 was however estimated at US$3.35 billion.

This translated into a surplus of about US$330 million.