Ghana recorded a provisional trade surplus of $1.81 billion for the first half of 2024, driven largely by growth in gold and crude oil exports.
This is according to the Central Bank of Ghana’s Monetary Policy Report for July 2024, which highlights significant improvements in the country’s export performance compared to the same period in 2023.
“The trade balance recorded a provisional surplus of US$1.81 billion in the first half of the year, higher than the surplus of US$1.60 billion recorded in the corresponding period of 2023. The improved trade surplus resulted from a higher increase in exports relative to imports,” the report noted.
Total exports rose by $1.09 billion, a 13.4% increase, bringing the total to $9.23 billion, up from $8.14 billion in the same period last year.
The surge in export earnings was primarily driven by significant gains in gold and crude oil exports. “The value of gold exports increased by 46.4 percent to US$5.04 billion, driven by both volume and price increases,” the report detailed.
The volume of gold exports grew by 28.9% to reach 2.4 million ounces, boosted by higher output from small-scale mining operations. In addition, the realized price of gold saw a 13.6% increase, averaging $2,094.5 per fine ounce during the period.
Crude oil also contributed significantly to the trade surplus, with earnings from oil exports reaching $1.98 billion, an improvement from $1.66 billion recorded in the first half of 2023. This boost in oil revenue was attributed to both increased production and higher global prices for crude oil.
However, not all sectors performed well. The cocoa industry, a traditionally vital component of Ghana’s export portfolio, faced significant challenges.
“Receipts from cocoa exports, both beans and products, declined by 47.4 percent, from US$1.454 billion in the first half of 2023, to US$760 million in the first half of 2024,” the report disclosed.
This sharp decline was attributed to several issues plaguing the sector, including extreme weather conditions, disease outbreaks, and rampant smuggling of cocoa beans.
Despite the strong export performance, Ghana’s import bill also increased. “The total imports bill rose by 13.5 percent to US$7.42 billion in the first half of the year, driven by both oil and non-oil imports.” Oil imports climbed 6.1% to $2.30 billion, while non-oil imports surged by 17.2% to reach $5.12 billion.
Commodity Price Trends
The report highlighted notable price movements for Ghana’s key export commodities in the global market. Cocoa prices experienced a sharp rebound in June 2024, reaching $9,022.6 per tonne following a 19.2% dip in May.
“From January to June 2024, cocoa prices soared by 113.02 percent, mainly on the back of tight supply,” the report explained, with extreme weather conditions and rising demand contributing to the surge in prices.
Crude oil prices remained relatively stable during the period, with a slight increase of 0.01% in June to average $83.01 per barrel. “Prices were supported by escalating geopolitical tension in Europe and the Middle East, notwithstanding OPEC+’s decision to boost supply later in the year,” the report added.
Meanwhile, gold prices saw a slight dip in June, falling by 1.1% to settle at $2,325.34 per fine ounce. “Gold prices were weighed down by a rising US dollar and increasing Treasury yields, but losses were moderated by safe-haven demand amid tensions in the Middle East,” the report noted.
Despite this minor decline, gold prices have increased by 14.2% since the beginning of the year, driven largely by concerns over global economic uncertainty.
Commodity Price Index
In terms of overall export performance, Ghana’s key commodities saw their prices increase on the global market in June 2024.
“The weighted average price of the three major commodities exported by Ghana (cocoa, gold, and crude oil) increased in the month of June 2024. The index rose to 196.68 from 190.74 in the previous month, representing an increase of 3.1 percent,” the report confirmed.
The rise in the index was driven by increases in both cocoa and crude oil prices, which outweighed a marginal decline in gold prices.