Foreign direct investment falls to $926m in Q3 2023
Consequently, the trade surplus, coupled with the current account surplus and lower capital outflows, contributed to a noteworthy reduction in the overall balance of payments deficit. By the end of the third quarter in 2023, the deficit decreased to $617 million, a considerable improvement from the $3.4 billion deficit reported in the same period in 2022.
During its latest Monetary Policy Committee meeting on November 27, 2023, the Bank of Ghana disclosed that foreign direct investment (FDI) witnessed a moderation, settling at $926 million by the end of the third quarter of 2023. This represents a decline from the $1.1 billion recorded in the same period in 2022.
Governor Ernest Addison highlighted that the capital and financial accounts experienced positive trends, benefitting from reduced portfolio outflows and lower amortization payments during the reviewed period.
The net outflow in the capital and financial accounts stood at $1.5 billion, slightly lower than the $1.6 billion recorded a year earlier, attributed to diminished portfolio payments and reduced government amortization.
Within this timeframe, portfolio outflows notably decreased to $195 million, a significant reduction from the $1.9 billion reported a year earlier. Additionally, government loan amortization witnessed a substantial 41.7% decline, reaching $523 million, primarily attributed to the impact of the debt standstill.
Governor Addison emphasized that these “favorable developments in the current, and the capital and financial accounts impacted positively on the balance of payments.”
Consequently, the trade surplus, coupled with the current account surplus and lower capital outflows, contributed to a noteworthy reduction in the overall balance of payments deficit. By the end of the third quarter in 2023, the deficit decreased to $617 million, a considerable improvement from the $3.4 billion deficit reported in the same period in 2022.
Source:norvanreports
