Based on easing inflationary pressures and optimism about macroeconomic conditions, the latest confidence surveys by the Bank of Ghana showed significant improvement in consumer and business indices, the highest in the last seven years.
On the domestic front, the Central Bank’s high frequency real sector indicators also pointed to a sustained pickup in economic activity.
It mentioned that its updated Composite Index of Economic Activity (CIEA) increased by 2.3% year-on-year in March 2025, compared with 1.0% over the same period last year.
This was mainly driven by exports, credit to the private sector, and construction activities.
In addition, the Ghana Purchasing Managers’ Index rose above the 50-benchmark as output and new orders increased, signaling improved growth prospect.
Meanwhile, global economic developments in the first four months of the year were characterised by low growth prospects, unsynchronised disinflation outcomes, and restrictive global financial conditions.
This was driven largely by significant headwinds associated with the trade policy shifts in the United States.
The potential spillover effects of the imposition of the trade tariffs by the United States and counter-tariff measures also have heightened policy uncertainty, weakened investor sentiments, and lowered global growth prospects.