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

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

According to its updated World Economic Outlook Report, the current account balance which is a measurement of a country’s trade where the value of goods and services imported exceeds the value of products exported will however rise to -4.9% in 2022.

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

Prior to covid-19, the country’s current account deficit stood at 3.1% and 2.8% in 2018 and 2019 respectively. This comes despite it had recorded trade surplus in these years.

According to the Bank of Ghana’s Summary of Economic and Financial Data, Ghana recorded a trade surplus of US$2.015 billion in 2020. This was equivalent of 3% of Gross Domestic Product.

According to the data, 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 of 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.

Cocoa and gold profited immensely from increased prices on the international market.

Gold was the biggest earner, bringing in US$6.7 billion, representing about 47% of total exports.

Also, in the first two months of this year, the nation bagged US$3.86 billion from total exports with gold exports being $931 million.

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.

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