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50
The Ghanaian Economy
overall deficit of USD$29.5 million, compared to a
deficit of USD$716.8 million in the first three quarters
of 2008. The satisfactory performance was due to
a sharp improvement in the current account which
narrowed from a deficit of USD$1,030 million in the
first three quarters of 2009, compared to a deficit of
USD$2,730 million during the same period of 2008.
There was marked improvements in the trade defi-
cit from almost USD$3,759.4 million recorded in the
first nine months of 2008 to USD$1,773.8 million,
showing a marked improvement.
Exports
Export earnings are provisionally estimated at
USD$4,229.7 million in the first three quarters of
2009, reflecting a 3.8 per cent increase over the
2008 level. The increased revenue from exports was
accounted mainly by price. Increases in the country’s
major exports were mainly cocoa beans and gold.
The value of exports of cocoa beans increased from
USD$976.9 million in the first three quarters of 2008
to USD$1,061.2 million in 2009 mainly on account
of an increase in export prices. Although the aver-
age realized prices increased by 30.2 per cent, ex-
port volumes declined by 16.6 per cent to 382,424
tonnes, from 458,426 tonnes in 2008.
Export of cocoa products increased by 23.7 per cent
in the first three quarters, from USD$175.3 million
in 2008 to USD$216.8 million in 2009. Gold exports
registered a marginal growth of 3.5 per cent during
the first three quarters of 2009, raising revenues to
USD$1,812.0 million.
Whilst the exported volume of the metal remained
almost stable at 1.9 million fine ounces, aver-
age realized prices increased by 3.0 per cent from
USD$889.6 per fine ounce in 2008 to USD$916.3
per fine ounce in 2009.
On the other hand, timber export revenues declined
from USD$234.8 million recorded in the first three
quarters of 2008 to USD$168.6 million over the
same period in 2009. The decline was reflected in
both export volumes and prices by 24.3 per cent
and 5.1 per cent, respectively. Export volume during
the first three quarters of 2009 was 319,988 cubic
metres, compared to 422,663 cubic metres in 2008.
Average prices significantly fell to USD$526.91 per
cubic metre in 2009 compared to USD$ 555.4 per
cubic metre in 2008.
Imports
The value of imports declined by 23.4 per cent from
USD$7,834.1 million in 2008 to USD$6,003.5 million
in the first three quarters of the year. Total oil imports
are estimated at USD$1,083.9 million compared
with USD$2,017.6 million in 2008, reflecting a drop
of 46.3 per cent.
The value of crude oil imports declined substantially
from USD$1,1190.1 million in 2008 to USD$294.8
million over the period, partly on account of lower
prices. Non-oil imports declined by 15.2 per cent,
from USD$5,816.5 million in 2008 to USD$4,919.6
million in 2009. Imports of capital goods fell by 25
per cent, intermediate goods by 11.3 per cent and
consumption goods by 12.9 per cent.
International Reserves
Gross international reserves rose from a stock
USD$2,036.2 million at the end of 2008 to
USD$2,317.1 million at the end of September 2009.
This translates into a cover for 2.4 months of imports
of goods and services.
The Balance of Payments projections point to a fur-
ther improvement on account of the impact of the
projected cocoa loan drawdown and expected do-
nor disbursements of USD$275 million in the fourth
quarter of the year. Gross international reserves
are projected at USD$2,727.0 million for end 2009,
enough to cover 2.5 months of imports of goods and
services, compared to 2.1 months of import cover at
the end of 2008.
The domestic economy continues to revolve around
subsistence agriculture, which accounts for 35% of
GDP and employs 55% of the work force, mainly
small landholders. Public sector wage increases and
regional peacekeeping commitments have led to con-
tinued inflationary deficit financing, depreciation of
the Cedi, and rising public discontent with Ghana’s
austerity. Furthermore, according to the World Bank,
Ghana’s per capita income has barely doubled over
the past 45 years. Even so, Ghana remains one of
the more economically sound countries in all of Africa.
Consequently, we may say, that in the last eighteen
years the economy has experienced a real aver-
age growth of 3.9%, allowing a 3% expansion of
the real GDP per capita and supposedly reaching
USD$3,610 per person in 2008, thus, placing itself
as an economy of average growth according to the
World Bank standards.