Ghana’s current account deficit to narrow to 1.9% in 2023 – EIU predicts
Economist Intelligence Unit predicts Ghana’s current account deficit to narrow to 1.9% of GDP in 2023 and further to 1.1% in 2024 due to a decrease in fuel import prices and strict import regulations.
However, the deficit is expected to widen to 2.7% in 2027 as the primary income deficit grows.
“Although export earnings from gold and cocoa (which are among Ghana’s major commodities) will rise, revenue from oil exports will fall in 2023-24 as oil prices decline from peak 2022 levels, narrowing the trade surplus”, it explained.
The trade surplus will narrow due to declining oil prices, but is expected to widen in 2026-27 driven by a rise in gold and oil output.
The services account will remain in deficit, but is predicted to gradually decrease as the tourism sector recovers.
The primary income deficit will increase in 2023 due to repatriation of profits, but is expected to fall in 2024 before rising again in 2025-27 with new projects coming on stream.
The secondary income account will continue to have large surpluses, supported by remittances, and the deficit will primarily be financed by short-term borrowing.
Source: Ghana Business
