Ghana relies heavily on exports to generate its foreign currency earnings. However, the recent announcement from the Bank of Ghana stated that there has been a decrease in the country’s export revenues.
The country’s export earnings have experienced a decrease in the initial eight months of 2023, as stated by the Bank.
The trade account showed a surplus of $2 billion, an increase compared to the $1.6 billion recorded during the same period last year. This was mainly because of import compression and a decrease in exports, it was clarified. As per the central bank’s report, the overall revenue generated from exports witnessed a decline of 8.9 percent compared to the previous year, amounting to $10.8 billion.
This decline was primarily due to a significant decrease in the export of crude oil and cocoa products, both of which are major exports for the country. During the period under review, the Bank stated that the exportation of crude oil experienced a significant decline of $1.5 billion.
This reduction can be attributed to a decrease of 18.8 percent in production levels and a 23.6 percent drop in prices. The value of cocoa bean and product exports stood at $1.6 billion, similar to the previous year, as increased bean production offset the reduced quantity of cocoa products.
The text highlighted that gold exports rose to $4.7 billion, mainly due to an 8.5 percent increase in the quantity of gold exported and a 1.9 percent rise in prices. Income generated from exports other than traditional exports, including non-traditional ones, experienced a slight decline of 1.6 percent to reach a total of $2.1 billion.
Imports decreased by 14.7 percent from $10.3 billion in the previous year to $8.8 billion.
The statement mentioned that the contraction of non-oil imports amounted to a decrease of 13.1 percent to $6.1 billion, while oil and gas imports also experienced a decline of 18.2 percent to $2.7 billion.