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

According to the Monetary Policy Committee of the Bank of Ghana report, 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, according to the Bank of Ghana, 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.

Again, 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% in November 2023 – the highest in two years – from a contraction of 6.2.0% 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 latest Ghana Statistical Service data showed an expansion in overall real Gross Domestic Product by an annual rate of 2.0% driven by the services and agriculture sectors during the third quarter of 2023, relative to 2.7 percent over the same period in 2022.

Nonoil GDP growth moderated to 2.1% from 3.3% over the same comparative period