Private remittances from abroad in the first quarter of this year shot up to $673.8 million, the Bank of Ghana (BoG) has said.

This is compared to $449.9 million during the same period of 2010.

Both individual and institutional remittances went up in the first three months of the year, the Central Bank stated in its assessment of the Ghanaian economy.

At the same time, the Capital and Financial Account registered a surplus of $229.6 million, compared to a surplus of $953.5 million for the first three months of 2010.

The decline in the surplus on the capital and financial account, the Central Bank stated, was mainly a result of net lower portfolio inflows.

Remittances contribute significantly to economic growth and living standards of the people, as most people in Ghana depend on their relations abroad.

Several Ghanaians in the USA, UK, Australia, South Africa, Germany, Holland and others regularly remit monies back home.

In 2010, remittances from abroad to individuals dropped for the first nine months.

This was after it had gone up in the first five months of the year to register $626.2 million, a 14.8 percent increase.

The decline suggested that the global economy had not fully recovered as some countries in Europe were struggling to revamp their economies.

Total transfers into the economy for individuals from January to October 2010 was $1.2 billion, as against $1.3 billion recorded in 2009.