Remittances to Ghana to hit $4.5bn in 2022 – Fitch Solutions

Remittances to Ghana is expected to grow to about $4.5 billion in 2022, as the global economy recovers, Fitch Solutions has projected.

Nonetheless, the country’s Current Account deficit will widen albeit modestly, from an estimated 2.6 per cent of the size of the economy in 2021 to 2.9 per cent in 2022.

Fitch Solutions said Ghanaians will continue to move abroad as a result of the reopening of borders, a situation that will boost remittance inflows into the country.

Again, there is anticipated increase in foreign direct investments in the coming quarters, as gold mining companies such as GoldFields and Newmontinvest in production capacity.

Despite that, the research arm of ratings agency, Fitch, said the country’s current account position will expand but marginally in 2022, though it will not be in the same category five or more years ago.

“That said, the widening of the external account position will be tempered by stronger tourist arrivals, narrowing the services trade deficit from $4.8 billion in 2021 to $4.3 billion in 2022”.

It also projected an increase in services exports by 25.1 per cent in 2022, as increased demand for imported business and financial services surge.

Remittances to Ghana shot up by five per cent to $3.6 billion in 2020, according to World Bank’s 2021 Migration and Development report.

With the exception of Nigeria where there was a significant decline in remittances, foreign inflows to Africa went up by 2.3 per cent.

According to the report, Ghana was ranked second behind Africa’s most populous nation, benefiting significantly from remittance flows last year.

“Remittance flows to the region were estimated to have declined by 12.5 per cent in 2020. The decline was almost entirely due to a 27.7 per cent decline in remittance flows to Nigeria, which alone accounted for over 40 per cent of remittance flows to the region.”

“Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 percent, demonstrating resilience at a time of crisis. Indeed, strong remittance growth was reported in Zambia (37 per cent), Mozambique (16 per cent), Kenya (9 per cent), and Ghana (5 per cent)”, the report added. –

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