According to the Bank of Ghana, the prices of key export commodities in 2023 showed a mixed trend on the international market.
In December 2023, Governor Ernest Addison reported a 5.0% decline in crude oil prices to an average of US$77.3 per barrel. This can be attributed to sluggish energy demand in the United States and China, as well as the easing of concerns regarding disruptions in supply due to tensions in the Red Sea.
In contrast, cocoa prices experienced significant growth, with an annual increase of 66.8% to close at an average of US$4,235.60 per tonne. This rise can be attributed to reduced supplies in the market.
Furthermore, gold spot prices rose by 13.3%, closing at an average price of US$2,035.43 per fine ounce in December 2023. The weakened dollar and falling bond yields after positive U.S. economic data fueled expectations of interest rate cuts, benefiting the gold market.
As a result of the developments in the prices of major export commodities, along with lower production levels in cocoa and crude oil, Ghana’s trade balance experienced a marginal decline. The trade surplus for 2023 totaled US$2.63 billion, lower than the US$2.87 billion recorded in 2022.
Governor Addison explained that this decline in the trade surplus was primarily due to a greater decline in export earnings compared to imports. Merchandise exports decreased by 4.9% to US$16.6 billion in 2023. Gold exports increased by 15.0% to US$7.6 billion, benefiting from both volume and price increases. Cocoa beans exports fell marginally by 1.1% to US$1.3 billion, driven by lower volumes and prices. Crude oil exports experienced a significant decrease of 29.3% to US$3.8 billion, primarily due to reduced volumes and lower prices.
Imports also decreased, with payments lower by 4.2% to US$14.0 billion. Non-oil imports declined by 4.6% to an estimated value of US$9.5 billion. Furthermore, oil and gas imports decreased by 3.3% to US$4.5 billion.
Overall, the prices of Ghana’s key export commodities in 2023 experienced mixed trends, contributing to a marginal decline in the trade balance. The decline in export earnings relative to imports led to a decrease in the trade surplus, which recorded a value of US$2.63 billion for the year.
Source: Ngamegbulam Chidozie Stephen
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