Crude Oil Rakes In $584.5M

Bank of Ghana (BoG) says Ghana’s crude oil has raked in about $584.5 million from trade surplus.

This, according to the Central Bank, represents about 1.1 percent of the country’s Gross domestic product (GDP).

In a statement issued on Monday, the MPC expects the trade surplus to translate into a current account surplus in the first quarter of 2018, and further into a strong external position.

On how the oil sector made this gain, the Central Bank indicated that, “There was a drawdown in international reserves largely reflecting seasonal foreign exchange flows, planned sovereign bond coupon payments and Energy Sector Levy Act (ESLA) related payments”.

A Trade Surplus occurs when a country’s export surpasses its import for a given period of time; there are more goods and services going out of the country than coming in.

A country that consistently has a trade surplus is usually one with a stable government and plenty of resources to support its economic activities.

Bright Future for Ghana’s Economy

 Though Ghana, has amongst other economic challenges incurred a debt of GH¢142.5 billion in the previous year, the prospects of salvaging the country’s economy is bright, the Central bank said.

Growth prospects for 2018 remains positive and are expected to be supported by crude oil production, gradual recovery in the non-oil sector, and favourable business and consumer sentiments, the committee said.

It indicated that, investment-led recovery is aided by favourable financing costs and improved business confidence, providing a substantial boost to capital and consumer spending, pickup in manufacturing activity and trade, with broad support from accommodative monetary policies.

Financial Soundness

 Other financial soundness indicated by BoG include, an increase in the total asset base of banks to GH¢95.1 billion in February 2018―representing an annual growth of 13.7percent.

The industry’s average Capital Adequacy Ratio (CAR) also improved to 19.2 percent in February 2018.

By: Grace Ablewor Sogbey/ [email protected]