Ghana witnessed a robust rebound in remittance inflows, reaching $1.75 billion by March 2024, compared to $1.2 billion in March 2023.
This surge, highlighted in a report by Treasury Hub Ghana, translates to an average of $500 million per month or $19 million per day.
The increase in remittance contributed to a current account surplus of $372.12 million, though this marks a 40.8 per cent decline from the $629.01 million surplus recorded in the first quarter of 2023.
The reduction in surplus was primarily driven by higher imports and increased income payments, with net income payments rising to $727 million in the first quarter of 2024 from $508 million in 2023.
Despite the lower current account surplus, Ghana achieved a significant turnaround in its balance of payments (BoP), recording a surplus of $84.74 million in the first quarter of 2024.
This marks a substantial improvement from the $586.99 million deficit registered in the same period of 2023. The shift in the BoP was supported by a robust trade balance surplus and a notable current account surplus, as reported by the Bank of Ghana (BoG).
The trade balance surplus stood at $774 million, and the current account surplus of $372 million was a key driver in achieving the BoP surplus. However, the trade balance surplus for the first four months of 2024 was $744.3 million, significantly lower than the $1.39 billion surplus recorded in the corresponding period of the previous year.
Meanwhile, the capital and financial account recorded a net outflow of $113 million, an improvement from the $998.40 million outflow experienced in the first quarter of 2023.
This improvement is largely attributed to significant inflows from the International Monetary Fund (IMF) and World Bank, with increased foreign direct investment (FDI) flows into the economy.
Ghana’s positive balance of payments outcome underscores the impact of increased remittance inflows and strategic financial management, positioning the country for enhanced economic stability and growth in 2024.