The Bank of Ghana's Composite Index of Economic Activity (CIEA) at the end of May 2008 rose by 4.4 per cent over the level recorded for the first quarter, and 22.9 percent in year-on-year terms, which was above the trend growth rate of 21.3 per cent. • Evidence from other real sector indicators also point to sustained momentum in economic activity. Cement production for the first five months of the year (January to May 2008) amounted to 1,044,859 metric tons. • A total of 47,271 motor vehicles were registered within the first five months to May 2008, compared with 36,040 for the same period in 2007 (a growth of 31.2 per cent). • Cumulatively for the period January to June 2008, a total of 5,788 jobs were advertised, compared with 3,541 for the same period in 2007. • Financial data released-by listed companies for the period ended June 2008 sh6wed significant growth in turnover and profits in the corporate sector, including Manufacturing, Agriculture, Insurance and Food & Beverages sectors, except for Distribution, Information Technology and Oil Marketing where profits dipped. • Credit to the private sector and public institutions continued to be strong in the second quarter of 2008. For the twelve month period to May 2008, credit to the private sector and public institutions rose by GH¢1,699.9 million (58.0 per cent) on top of the GH¢858.1 million (41.4 per cent) recorded for the same period in 2007 • Credit to the private sector alone rose by GH¢1,206.9 million (or 50.3 per cent), compared with GHC776.5 million (47.8 per cent) during same period in 2007. The services sector accounted for 42.4 per cent, miscellaneous (13.3 per cent), construction (10.7 per cent), manufacturing (8.5 percent), commerce and finance (6.8 per cent), and transportation, storage and communication (5.0 per cent). • Developments In the banking system through May 2008 show continued strong asset growth. Total assets of the banking industry stood at GHC8,437.7 million in May 2008,4.4 percent growth over the level at the end of March 2008 and an annual growth of 37.1 per cent, compared with 45.7 percent for May 2007 (GHC6, 156.6 million). • Total expenditure (excluding capital expenditure externally financed by development partners) amounted to GHc2,803.5 million (17.2 per cent of GDP) including GHC304.8 million financed from sovereign bond proceeds, compared with GHC2 331.6 million (16.7 percent of GDP) for the same period in 2007. This represents a year-on-year expenditure growth of 20.8 per cent, compared with 50.7 per cent for the same period in 2007. • Overall, the preliminary data show a narrow budget deficit of GHc622.9 million (3.8 per cent of GDP) for the half year compared with GHC285.2 million (2.0 per cent of GDP) for the same period in 2007. The deficit, was mainly financed to the tune of GHC392.5 million (2.4 percent of GDP) domestically, and withdrawals from the sovereign bond account of GHC304.8 million (1.9 per cent of GDP). • Overnight Inter bank rates firmed-up by 244 basis points from March to 14.48 per cent at the end of June 2008 • Oil imports for the period amounted to US$1 ,257.0 million (25.4 per cent of total imports) • Non-oil imports amounted to US$3,688.5 million for the first half of the year (74.6 per cent of total imports) • Capital and intermediate goods together accounted for 74.8 per cent of total imports compared with 76.9 per cent for 2007. • The overall balance of payments position recorded a deficit of US$782.7 million in the first half of 2008, following a strong build-up of reserves of US$980.0 million in the fourth quarter of 2007, partly from sovereign bond proceeds. The deficit compares with US$124.3 million in 2007. • Gross International Reserves (GIR) at the end of June 2008 was US$2.3 billion, and translates on average into goods and services import cover of 2.4 months. • Private inward transfers - received by NGOs, embassies, service providers, individuals etc. - through the banks and finance companies for the first half of the year amounted to US$4.2 billion, vehicle represents 30.9 per cent increase over the amount of US$3.2 billion recorded for the corresponding period in 2007. • Of the total transfers for the period January to June 2008, US$798.9 million (or 19.1 per cent) accrued to individuals, compared with-US$718.1 million (22.7 per cent) for the same period in 2007. • Core inflation (defined to exclude energy and utility) continued to increase to 12.8 per cent in June 2008 from 10.2 per cent in March; and was 9.4 per cent at the beginning of the year. Source: The Spectator