Economic activity slowdown in the second quarter of this year, the Bank of Ghana has revealed.

According to the Central Bank, the updated Composite Index of Economic Activity (CIEA) recorded an annual growth of 1.7% in May 2022, compared to 2.5% in April 2022 and 5.0% in December 2021.

The key growth drivers were exports, credit to the private sector, and tourist arrivals, while construction activities and industrial production contracted over the period.

Business, consumer sentiments soften

Again, the Central Bank pointed out that results from its latest confidence surveys conducted in June 2022 showed a significant softening of business and consumer sentiments.

While consumers felt less optimistic about future economic conditions, businesses were concerned about the impact of high cost of raw materials, rising labour costs, exchange rate volatility, and weak consumer demand.

These conditions, it said, adversely impacted business optimism and prospects.

At the same time, the Purchasing Managers’ Index (PMI), which provides information on inventory accumulation and new orders at the firm level, also declined.