Consumer confidence about economy improves – BoG

The latest Bank of Ghana survey conducted in April 2023 showed an improvement in consumer sentiments about the Ghanaian economy.

According to the Governor of the Bank of Ghana, Dr. Ernest Addison, consumer confidence improved on the back of easing inflationary pressures, which led to consumer optimism about prospects of future economic conditions.

Similarly, businesses met short-term company targets during the period and expressed positive sentiments about company and industry prospects on the back of improving consumer demand and relative stability in the local currency.

The survey findings were broadly aligned with observed trends in Ghana’s Purchasing Managers Index (PMI) for April 2023, which signalled improvements in business conditions for the third successive month.

Composite Index of Economic Activity contracts

The updated real Composite Index of Economic Activity (CIEA) contracted by 6.4% in March 2023, compared to a contraction of 7.2% in the previous month, and a growth rate of 4.6% in March 2022.

The main indicators, according to the Bank of Ghana, that weighed down the Index during the period were imports, cement sales, credit to the private sector and port activity.

Domestic VAT collections, industrial consumption of electricity and tourist arrivals, however, improved in the review period.