Ghana’s current account deficit worsened in the first half of 2012 to $2.8 billion from $1 billion recorded in the same period in 2011.

The situation, according to the Bank of Ghana (BoG), partly reflected higher net services and income outflows of $1.4 billion in June 2012 compared to $15.9 million a year ago.

However, some analysts have indicated that a deficit, more often than not, is planned for the purpose of helping an economy’s development and growth and could be a sign of a strong economy that is a safe haven for foreign funds. Kofi Wampah, acting Governor of Bank of Ghana, recently told the media in Accra that the country’s capital and financial account also recorded lower net inflows of $787.1 million between January and June 2012 compared to $1.3 billion net inflows in the corresponding period of 2011.

He was delivering his outfit’s 52nd Monetary Policy Committee report after its deliberations on the economy.

Touching on the low performance of the country’s capital and financial accounts, Dr Wampah commented: “This was explained by increased short-term capital outflows and lower portfolio investments. However, net inflows of private capital improved on the back of increased foreign direct investments linked to the oil sector. The overall balance of payments therefore resulted in a deficit of $2 billion at the end of June 2012.”

Also, he indicated that the country’s Gross International Reserves was $4.2 billion at the end of August 2012 compared to $4.5 billion in August 2011, adding that it was equivalent to 2.4 months of import cover.