Ghana earns more from primary export commodities; CPI up 4.7% in first 2 months of 2022

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The weighted average price of the three major commodities exported by Ghana – cocoa, gold and crude oil – continued the uptrend, increasing by 4.7% in February 2022.

The rise in the overall Commodities’ Price Index was led by crude oil (10.3%), followed by cocoa (5.3%) and gold (2.2%).

Cocoa

According to the Bank of Ghana, cocoa futures were relatively stable in April 2022, losing just 0.1% of its value to close the month at an average price of $2,588 per tonne.

Fears that the Russia-Ukraine conflict could slow global growth and affect demand for the beans weakened prices.

But compared to the same period last year, the commodity gained 7.0% on the back of poor weather patterns across West Africa and low port arrivals in Ghana.

Brent Crude

Brent Crude on the other hand retreated in April 2022, ending the month at an average price of $105.8 per barrel compared to $112.5 per barrel in the previous month.

The prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China were some of the headwinds that affected oil prices. Over the past year, Brent crude has gained 62% amid tight supply, largely due to output restraint by OPEC members.

Spot gold lost 0.73% of its value in April to settle at an average price of US$1,935.2 per fine ounce. Gold lost on grounds of expectations of faster policy tightening by the Federal Reserve and a strengthening dollar. Compared to the same period last year, however, gold prices have gained 10%, spurred by safe-haven demand and global inflation concerns.

Trade Balance

In the first four months of 2022, the trade account recorded significant improvement.

The trade surplus improved to $1.3 billion in the first four months, compared with $800 million in the same period of 2021, largely driven by higher crude oil prices and non-traditional exports.

Crude oil export receipts recorded significant growth of 61.0%, and gold earnings increased by 3.6%, all driven by higher prices.

Earnings from non-traditional exports also increased by over 33.5% to $1.0 billion. These