Ghana’s Gold Trade Fuels Record $5 Billion Trade Surplus in 2024

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Ghana’s economy marked a significant milestone in 2024 as its trade surplus reached a record $5 billion, a substantial leap from $2.7 billion in the previous year. The Bank of Ghana attributed this growth to a remarkable surge in gold exports, which soared by more than 50% to $11.6 billion.

This historic trade balance comes as a relief for the West African nation, which has faced economic challenges in recent years. Analysts suggest that the surplus could help stabilize the Ghanaian cedi, which recently experienced a 3.2% depreciation following a rise in the U.S. dollar triggered by global economic shifts, including Donald Trump’s victory in the U.S. election.

The Bank of Ghana reported an improvement in the trade account, which rose to 5.9% of GDP in 2024 from 3.5% in 2023. Total exports increased from $16.7 billion to $20.2 billion, while imports also grew from $14 billion to $15.2 billion.

While gold exports led the surge, other sectors presented a mixed performance. Oil exports recorded a modest increase from $3.8 billion to $3.9 billion, but cocoa exports—another key contributor to Ghana’s economy—declined from $2.2 billion to $1.7 billion during the same period.Ghana’s Gold Trade Fuels Record $5 Billion Trade Surplus in 2024

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Current Account and Remittances Show Growth

Ghana’s current account balance also showed a significant improvement, climbing from $1.4 billion (1.8% of GDP) in 2023 to $3.5 billion (4.2% of GDP) in 2024. Inward remittances saw a notable rise, increasing from $5.1 billion to $6.7 billion year-over-year.

Additionally, the country’s gross international reserves grew to $9 billion by the end of December, up from $5.9 billion in the previous year. The Bank of Ghana’s gold holdings also expanded significantly, rising from 19.5 tons to 30.5 tons over the same period.

Debt and Banking Sector Performance

Despite these gains, Ghana’s public debt increased to 736.9 billion cedis ($48.5 billion), equivalent to 72.2% of GDP, up from 599.2 billion cedis (72.5% of GDP) the previous year.

The banking sector, however, showed resilience. Loans and advances grew from 77 billion cedis to 95.7 billion cedis in 2024, with the annual growth rate of loans rising to 24.3% in December, compared to 13.8% in 2023. The capital adequacy ratio also edged up slightly to 14% from 13.9% year-over-year.

Mobile money transactions saw a remarkable increase, reflecting Ghana’s growing digital economy. Monthly transaction values rose to 334.8 billion cedis in December 2024, compared to 199.3 billion cedis in the same month of the previous year.

A Mixed but Promising Outlook

Ghana’s record-breaking trade surplus underscores the importance of its gold trade, which has been a driving force behind the nation’s economic recovery. However, the decline in cocoa exports and rising public debt highlight areas that require attention.

As Ghana continues to leverage its natural resources and strengthen its fiscal policies, the country is poised to navigate its economic challenges while capitalizing on its trade opportunities.

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