Dr. Ernest Addison, Governor of the Bank of Ghana
The Bank of Ghana notes that economic activity will continue to recover in the first half of 2023 and beyond.
The central bank’s Monetary Policy Report shows that growth remains strong after recording average real gross domestic product (GDP) growth of 3.2% in the first half of this year.
In the third quarter, the central bank’s high-frequency real sector indicators showed a continued recovery in economic activity, albeit at a slower pace.
The latest Composite Economic Activity Index (CIEA) showed a lower contraction of 0.4% in September 2023, compared to a strong contraction of 1.2% in the same period last year.
The main indicators that contributed to the relative improvement in CIEA were industrial electricity consumption, private sector contributions to social security, and tourist arrivals.
However, momentum in private sector lending, cement sales, and port activity slowed over the period.
Confidence surveys show rising positive sentiment on the economy
However, the central bank’s confidence survey conducted in October 2023 reflected the rise of positive sentiment towards the economy.
Business confidence improved as companies achieved short-term goals and expressed optimism about business prospects, but consumer confidence remained stable, largely unchanged from the August 2023 survey.
Additionally, Ghana’s Purchasing Managers’ Index (PMI) for October 2023 was 50.5, unchanged from the previous month’s level.
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