Ghana’s trade surplus narrows as gold exports surge
Ghana has sustained a trade surplus since last year, according to the Ghana Statistical Service’s recently released Second Quarter Trade Statistics. However, the report revealed a marginal decline in the trade surplus for the period from April to June 2024, with the figure dropping to GH¢5.4 billion. This represents a notable shift from the stronger performance recorded in the first half of 2023, highlighting changing dynamics in the country’s trade balance.
Gold continued to dominate Ghana’s export landscape, contributing an impressive GH¢37.0 billion, which accounts for 57.6% of the total export value in the second quarter of 2024. This marks a significant increase in gold’s share of exports, rising by about 10% compared to the same period in 2023, where it constituted 47.5% of total exports. The surge in gold exports can be attributed to rising global gold prices, which bolstered the country’s earnings from this precious metal.
The United Arab Emirates (UAE) emerged as the top destination for Ghana’s gold exports, overtaking Switzerland. The UAE accounted for 39.9% of Ghana’s gold exports, followed by Switzerland at 35.6%, South Africa at 16.2%, and India at 7.5%. This shift underscores the evolving trade relationships and Ghana’s increasing economic ties with the UAE.
Despite the strong performance in gold exports, Ghana’s cocoa sector continued to struggle, with cocoa exports decreasing by GH¢4.0 billion between the first and second quarters of 2024. This marks the fifth consecutive quarter of decline in cocoa export values, reflecting ongoing challenges within the sector. Recent GDP figures have also indicated a contraction in the cocoa industry, which has long been a cornerstone of Ghana’s economy. The persistent decline raises concerns about the future sustainability and competitiveness of the cocoa sector.
On the import side, China maintained its position as the largest source of imported goods to Ghana, contributing GH¢12.3 billion, or 20.9% of total imports. Ghana’s main trading partners remained Asia and Europe, with Asia continuing to be the largest destination for the nation’s exports. Notably, while imports from Asia have been steadily increasing, imports from Europe have been on a downward trend. This suggests a substantial shift in Ghana’s trading patterns, possibly driven by changing global supply chains and economic strategies.
Government Statistician Professor Samuel Kobina Anim highlighted the impact of price changes on trade values during the quarter. He noted that export prices surged by 40.5% year-on-year, primarily due to the rising global gold prices. Import prices also saw an increase, rising by 18.9%, reflecting the broader inflationary pressures within the global economy.
“In the computation of nominal and real trade values, we have denominated it in cedis. The more than doubling of the nominal values from GH¢46.3 billion around the second quarter of 2021 to the current figure of GH¢123 billion indicates a significant adjustment for price changes from a cedi-denominated perspective,” he stated. This underscores the impact of currency fluctuations and price volatility on Ghana’s trade performance, further complicating the country’s economic outlook. As Ghana navigates these complex trade dynamics, the government may need to reassess its strategies to ensure sustainable growth in key sectors like cocoa, while continuing to leverage the opportunities presented by gold and other exports. The evolving trade patterns with key partners such as the UAE and China will also play a crucial role in shaping the country’s economic future.
