Economists at Standard Bank, the parent company of Stanbic Bank Ghana, have reported notable improvements in Ghana’s balance of trade.
In the June 2024 Flashnote of the Africa Markets Revealed (AMR) report, Standard Bank reported that the country’s trade balance reached a surplus of USD 1.81 billion in June 2024, up from USD 1.60 billion in June 2023. This, according to the report, was mainly due to a recovery in total exports, which increased to USD 9.23 billion from USD 8.14 billion over the same period.
“A substantial rise in international prices drove cumulative gold exports up to USD 5.04 billion in June 2024, compared to USD 3.44 billion in June 2023. Although cocoa exports recovered to USD 760 million in June from USD 579.6 million in April 2024, they were still lower than the USD 1.45 billion recorded in June 2023. Total imports rose to USD 7.42 billion in June 2024 from USD 6.53 billion in June 2023, with non-oil imports being the primary contributor (USD 5.12 billion vs. USD 4.37 billion),” the report noted.
The report further noted that the sharp recovery in total exports significantly improved the current account balance, resulting in a surplus of USD 1.28 billion in June 2024, up from USD 863.0 million in June 2023. The report also said gross forex reserves increased, reaching USD 6.87 billion (3.1 months of import cover) in June 2024, up from USD 6.45 billion (2.9 months) in May 2024 and USD 5.99 billion (2.7 months) in March 2024. This recovery was bolstered by recent inflows from the IMF programme, World Bank Development Policy Operation (DPO), and Financial Stability Fund loans, as well as the Bank of Ghana’s domestic gold purchase programme.
The Standard Bank Flash Note also highlighted the recent stabilization of the local currency, explaining the underlying factors contributing to this development.
The report said “The Monetary Policy Committee (MPC) of the Bank of Ghana attributed the recent stabilization of the Ghanaian cedi to the completion of the external debt restructuring, an improved fiscal position, and loan disbursements from the IMF and World Bank.” As forecasted in the June African Markets Revealed (AMR) publication, a neutral monetary policy stance is expected for the remainder of the year.”
The African Markets Revealed Report, a monthly publication by Standard Bank Group, the parent company of Stanbic Bank Ghana, provides an economic and financial outlook for African countries, reviewing current economic conditions and offering short to medium-term economic predictions.
