Ghana’s gross international reserves closed at $8.982 billion in December 2024, reflecting an increase of $1.101 billion for the month, according to the Bank of Ghana’s Summary of Economic and Financial Data.
This represents approximately four months of import cover, a significant improvement in the country’s external financial position.
Reserves fluctuated before stabilizing
At the start of the year in January 2024, the reserves stood at $6.31 billion, dropping to $5.99 billion by March. However, they rebounded to $6.59 billion in February and continued to climb steadily through the year.
The improvement in the external sector was attributed to a higher current account surplus and a reduction in net financial outflows, resulting in a strong build-up of external reserves.
Trade surplus drives reserves growth
Ghana’s trade balance recorded a $4.98 billion surplus in December 2024, a significant increase from the $2.694 billion recorded in 2023.
This growth was largely driven by a 53.15% increase in gold exports, which reached $11.64 billion by year-end.
Overall, total exports increased by 21.06% to $20.22 billion, underscoring Ghana’s strong performance in key commodities despite challenges in some sectors.
Mixed performance in export commodities
Gold: Gold exports emerged as the standout performer, climbing by over 53% to $11.64 billion, reflecting robust global demand.
Crude Oil
Oil exports saw a slight decline of 0.7%, ending at $3.86 billion, a marginal drop attributed to price fluctuations.
Cocoa
Cocoa exports faced a sharp decline, falling from $2.152 billion in 2023 to $1.696 billion in 2024.
The sector struggled with challenges including extreme weather conditions and the adverse effects of illegal mining (galamsey) activities.
Rising import bill
Ghana’s total import bill rose to $15.24 billion in December 2024, up from $14.008 billion in the same period the previous year.
The increase highlights growing demand for imported goods, which could impact the trade balance if not offset by higher export earnings.
Outlook
Ghana’s strengthened external reserves and impressive trade surplus are positive signals for economic stability. However, the mixed performance of key export sectors, particularly the cocoa industry, highlights the need for strategic interventions to ensure sustained growth.
Maintaining momentum in reserves accumulation and addressing structural challenges in export sectors will be critical as the country navigates 2025.
