<<Print>>

Ghana�s export earnings for the first half of 2013 were lower than those for the same period of 2012, the Bank of Ghana�s Monetary Policy Committee�s recent release has indicated. This is due to the falls in both the gold price on the global market and cocoa production in Ghana. According to the statement, export earnings from gold fell to US$2.7 billion, down nearly 16% from US $3.2 billion earned during the corresponding period of 2013, as a result of the fall in Gold price from a peak of over US$1,600 per ounce at the beginning of the year to barely US$1,300 currently, as well as a slight drop in production. Similarly, cocoa earning were down to US$1.2 billion, 25% down from US $1.6 billion in the wake of nearly 25% fall in production volumes during the first half of this year. However, oil exports have taken up the stock, with revenues increasing by 47.7% during the first half of 213 to US$2 billion as a result of increased production from the Jubilee oilfield, which is now close to the full capacity of 120,000 barrels per day. This restricted the decline in merchandise exports to just 0.8%, these reaching US$7.5 billion during the first half of 2013. The lull in economic activity resulted in an uncharacteristic fall in imports, both oil and non-oil alike, which declined by 2.6% to US$8.6billion. Thus the trade deficit marginal improved to US$ 1.2 billion in 2012. However, private inward transfer received through the banking system from January to June 2013 declined by 6.4% on a year-on-year basis to US$8.3 billion, reflecting the continuing economic difficulties in the West Hemisphere. The smaller merchandise trade deficit could prevent gross international reserves from decreasing by US$436.4 million to US$4.9 billion by the middle of this year, down 8.2% from US$5.3 billion as at the end of 2012. This was sufficient to cover 2.7 months of imports, which is short of the three-month import cover targeted by the government.