Ghana Records $3.64bn Balance of Payments Deficit
Amidst an ongoing economic crisis, Ghana recorded a $3.64 billion balance of payments deficit in December from $3.4 billion in the previous quarter, according to official data from the central bank.
With rising imports amidst low home-based productivity and threat in the commodities supply chain, price level has worsened while Accra continues to battle with external debt service costs.
Recall that the statistics office reported a jump in headline inflation for December. The authority recently secured about $3 billion in funding supports from the International Monetary Fund, IMF, to weather the storm.
To access the fund, the IMF condition requires the authority to restructure its debts.
Ghana’s government income or revenue has been under pressure, pushing the budget deficit upward amidst weak local currency cedi, and exacerbating inflation rate reading. >>>Naira Depreciates to N462 at Investors, Exporters FX Window
Statistics office data for last month show that the consumer price index (CPI) which measures inflation rise to 54.1% last month.
The cedi currency has depreciated around 50% annually, and interest payments on government debt have swelled to between 70% and 100% of gross domestic product (GDP).
Recent balance of payments woes has been largely driven by a sharp reversal in capital flows, with Ghana’s capital account deficit having worsened to $2.18 billion in December from $1.64 billion in September.
At the same time last year, Ghana had a capital account surplus of more than $3.3 billion.
The country has requested to restructure its bilateral debt under the Common Framework platform supported by the Group of 20 major economies and is currently negotiating terms for a domestic debt exchange programme with local bondholders. # Ghana Records $3.64bn Balance of Payments Deficit
