Trade shortfall worsens

Ghana’s trade deficit deteriorated to US$334.6 million for the first four months of this year from a near zero balance in the corresponding period of last year.

The country’s services, income and transfer account recorded a lower deficit of US$788 million compared to a deficit of US$986.8 million in 2012.

This situation was driven by some moderation in the prices of major export commodities on the international market and slower growth in imports, the Bank of Ghana (BoG) report said:

“Total exports declined by 7.3 percent in year-on-year terms to US$3.8 billion during the first quarter of 2013. Of the total, gold exports were US$1.5 billion, cocoa beans and products were US$725.8 million and crude oil exports amounted to US$1.1 billion.

“Total imports, on the other hand, recorded a marginal year-on-year growth of 0.8 percent to US$4.2 billion in the first quarter. Of this, non-oil imports went down by 7.1 percent to US$3.2 billion while oil imports increased by 44.2 percent to US$913.3 million.”

It said that net inflows in the country’s capital and financial account improved to US$1.4 billion compared to US$156.7 billion in 2012, adding that this was on the back of higher official capital inflows amounting to US$316.3 million, net short-term capital flows of US$262 million, portfolio investments of US$246.3 million and private capital of US$570 million.

The foregoing developments resulted in an improved balance of payments deficit of US$136.3 million in the first quarter of 2013 compared to a deficit of US$1.3 billion in the same period of 2012.

However, the stock of public debt increased to GH¢38.3 billion (43.2 percent of GDP) at end April 2013 from GH¢35.1 billion in December 2012.

Of this, the stock of domestic debt amounted to GH¢20.3 billion compared to GH¢18.5 billion in December 2012.

“External debt stood at US$9.5 billion up from US$8.8 billion over the same period.”

From January to mid-May 2013, the local currency cumulatively depreciated by 2.3 percent against the US dollar. During the first quarter, the real exchange rate appreciated by 5.9 percent.

Furthermore, private inward transfers received through the banking system for the first quarter declined by 14.1 percent on a year-on-year basis to US$3.9 billion.

Of the total transfers, US$393.2 million accrued to individuals compared to US$478.5 million in the same period of 2012.

“Gross international reserves amounted to US$5.2 billion at the end of April 2013 compared to a stock position of US$5.4 billion at the end of December 2012. This is equivalent to 2.9 months of import cover.”