Economic activity shot up in the third quarter of 2021 as the Bank of Ghana’s updated Composite Index of Economic Activity (CIEA) recorded an annual growth of 11.2% in September 2021, compared with 10.8% and 4.2% in the corresponding periods of 2020 and 2019, respectively.

According to the Monetary Policy Committee report, economic activity during the third quarter continues to point to sustained recovery from the Covid-19 pandemic.

However, economic activity during the the second quarter of 2021 was relatively stronger than the third quarter of 2021, the Central Bank's data revealed.

The stronger growth in the CIEA, according to the Central Bank was driven by domestic VAT, industrial consumption of electricity, port activity, imports, and air-passenger arrivals.

Construction activities, however, slowed down somewhat.

Also, the results of the latest confidence surveys signalled continued improvement in both business and consumer sentiments.

“Businesses met short-term company targets and were optimistic about company and industry prospects as the yuletide approaches, despite concerns about high cost of raw materials and exchange rate depreciation.”

“Similarly, consumer confidence improved on account of positive economic prospects”, the report stated.

Meanwhile, provisional data at the end of October 2021 show a marked slowdown in the pace of expansion of key monetary aggregates.

Broad money supply (M2+) recorded an annual growth of 14.5 percent in October 2021 relative to 29.9% in the corresponding period of 2020.

The moderation was explained by a 19.5 percent year-on-year contraction in Net Foreign Assets of the banking system, despite the 21.4% growth in Net Domestic Assets.