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Trade Deficit Worsens

By Elikem MENSAH

Ghana’s trade deficit has widened in the first nine months of 2008. It recorded a deficit of US$716.8m compared with a deficit of US$566.9m during the same period in 2007.

The deficit was basically financed mainly by drawdown of reserves including the balances of sovereign bond proceeds of US$750m that accrued in the last quarter 2007.

However, the Bank of Ghana (BoG) has projected that the overall balance of payment deficit is expected to narrow to US$490m compared to a surplus of US$413.1m in 2007.

Total merchandise exports stood at US$4,017.5m, an average annual growth of 30.8% at the end of September 2008.

Export of cocoa beans and products amounted to US$1,160.9m compared with US$910.8m for the same period in 2007 representing an annual growth of 27.5%.

Cumulative cocoa purchases for 2007/2008 season through the end of September 2008 amounted to 758,908 tonnes, against a forecast of 650,000 tonnes for the entire crop season.

Gold export for the first nine months amounted to US$1,751.0m compared with US$1,247.4m for the same period in 2007.

Non-traditional exports the same at the same period amounted to US$716.9m, compared with US$586.7m for the same period in 2007.

Additionally, total merchandise imports for the period amounted to US$7,514.1m, recording an annual growth of 31.3%.

Non-oil imports grew by 38.3% on year-on-year basis and amounted to US$5,807.2m, representing 77.3% of total imports, compared with 73.4% for the same period in 2007. Capital and intermediate goods accounted for close to 70% of total non-oil imports bill compared with 68% for 2007.

Oil import bill for the period January to September 2008 was US$1,706.8m compared with US$1,523.9m for the same period in 2007.

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