Ghana’s trade balance reached a record surplus of $5 billion in 2024, a significant increase from $2.7 billion in 2023, according to the Bank of Ghana.
The surge was fueled by a 50% rise in gold exports, which hit $11.6 billion, reflecting a robust performance in the country’s key export sector.
Exports surge as imports rise modestly
Total exports increased to $20.2 billion, up from the previous year, while imports experienced a modest rise to $15.2 billion. This improvement pushed the trade account to 5.9% of GDP, compared to 3.5% in 2023.
The gains have provided much-needed support for the Ghanaian cedi, which has struggled against the US dollar, depreciating by 3.2% following Donald Trump’s U.S. presidential victory.
Gold leads, cocoa falters, oil rises slightly
The stellar performance in gold exports underpinned Ghana’s trade success, but other key export commodities showed mixed results:
Cocoa exports declined from $2.2 billion in 2023 to $1.7 billion in 2024, reflecting challenges in the agricultural sector.
Oil exports saw a modest increase, rising to $3.9 billion from the previous year.
Current account and reserves bolstered
The country’s current account balance improved significantly, rising from 1.8% of GDP in 2023 to 4.2% in 2024.
This was supported by an increase in remittances, which grew to $6.7 billion, further boosting the nation’s foreign exchange reserves.
As a result, Ghana’s reserves rose to $9 billion, and the Bank of Ghana’s gold holdings expanded to 30.5 tons, reinforcing its financial stability.
Public debt and structural challenges
Despite the strong trade and financial inflows, Ghana’s economic challenges remain significant.
Public debt rose to $48.5 billion, equivalent to 72.2% of GDP, highlighting concerns about debt sustainability.
Currency volatility also persists, with the cedi’s depreciation affecting both trade and domestic economic activities.
Financial sector growth
The financial sector showed positive trends, with loans increasing by 24.3% year-over-year to 95.7 billion cedis and mobile money transactions climbing to 334.8 billion cedis by December 2024.
Balancing growth and stability
Ghana’s strong trade performance, driven by gold exports and increased remittances, offers a foundation for recovery. However, achieving long-term growth will require addressing structural issues such as high public debt and currency instability.
Balancing economic expansion with financial stability will be critical as Ghana navigates the challenges of 2025 and beyond.
