According to the UK-based firm, Ghana would record a cur­rent account surplus of 1.3 per cent of Gross Domestic Product in 2023, from a deficit of 2.1 per cent of GDP in 2022.

“Our 2023 forecast, which marks a revision from our previous projection that Ghana’s current account balance would post a deficit of 0.9 per cent of GDP, follows weaker than antici­pated import growth in half-year of 2023. Indeed, merchandise im­ports contracted by 13.0 per cent year-on-year in half-year 2023 as a result of weak domestic demand and lower global commodity prices,” it said.

Meanwhile, exports fell by 7.2 per cent, pushing up the trade surplus to $299.6 million from $245.7 million first-half of 2022.

Data released by the Bank of Ghana (BoG) shows that the overall current account balance posted a surplus of $0.8 billion in the first-half of 2023, compared to a deficit of $1.1 billion in the corresponding period of 2022.

“We expect that the trade sur­plus will remain large by historical standards in second half of 2023. Imports will continue to contract as domestic conditions remain weak,” it stated.

“Indeed, inflation, which averaged 46.2 per cent year-on-year in half-year 2023, will remain elevated over the coming months, averaging 40.6 per cent through 2023, the highest annual rate since 1996. This will weaken pur­chasing power of households and constrain demand for imported consumer products,” Fitch Solu­tions added.

Meanwhile, the UK-based firm said restrictive monetary conditions would curtail the ability of businesses to fund their growth initiatives and would lead to a delay in corporate expan­sion plans, limiting demand for imported capital inputs.