The January 2023 update of the Bank of Ghana’s Composite Index of Economic Activity (CIEA) indicates a contraction in economic activity by 7.6% in February 2023.

This is compared to a growth rate of 4.2% in the same period of 2022.

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

“In the real sector, the Bank’s high frequency indicators pointed to further moderation in economic activity in line with the challenging macroeconomic environment”, the Central Bank disclosed in its March 2023 Monetary Policy Report.

While real sector activity showed continued to decline, both business and consumer sentiments continued to show further improvement in February 2023.

The Central Bank also said consumer confidence improved on account of easing inflationary pressures which led to some optimism about future economic conditions.

Again, business sentiments improved as companies met short-term targets amid positive company and industry prospects.

The survey findings were consistent with observed trends in Ghana’s Purchasing Managers Index for February 2023, which rose above the benchmark level of 50 for the first time since January 2022.