The Bank of Ghana has said the economy is strongly recovering from the woes it experienced in 2022.

According to them, the growth rate recorded in the latest surveys has shown that both consumer and business sentiments have seen signs of recovery.

It said there is a gradual recovery in economic activity, though growth remains below potential.

“The latest Ghana Statistical Service data showed an expansion in overall real GDP by an annual rate of 2.0 percent driven by the services and agriculture sectors during the third quarter of 2023, relative to 2.7 percent over the same period in 2022. Non-oil GDP growth moderated to 2.1 percent from 3.3 percent over the same comparative period.

“The Bank’s high-frequency real sector indicators point to a significant pickup in activity. The updated Composite Index of Economic Activity (CIEA) rebounded strongly with an annual growth of 9.6 percent in November 2023 – the highest in two years – from a contraction of 6.2 percent a year earlier. Domestic VAT, port activity, industrial consumption of electricity, imports, and tourist arrivals all contributed to the improvement in economic activity observed during the period,” the Governor of the Bank of Ghana said at the 116th Monetary Policy Committee press briefing on January 29, 2024.

The Bank’s latest surveys conducted in December 2023 showed a strong rebound in both consumer and business sentiments, reflective of the signs of recovery.

The Bank of Ghana added that consumer confidence improved on account of easing inflationary pressures which led to optimism about future economic conditions.

Similarly, business confidence increased significantly, signalling improving consumer demand, as firms met short-term targets and expressed positive sentiments about company and industry prospects. The survey findings were broadly aligned with observed trends in Ghana’s Purchasing Managers’ Index (PMI), which improved to 51.8 in December 2023 from 51.6 in the previous month.



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