Dr. Ernest Addison
THE CENTRAL Bank says data available to it shows promises of a rebound in economic activity.
Speaking to journalists yesterday in Accra, Dr. Ernest Addison, Governor of the Bank of Ghana, stated, “From the Bank of Ghana’s surveys in August, consumer confidence is bouncing back strongly and is currently above pre-lockdown levels. Consumers seem to be responding to the gradual lifting of restrictions providing some scope for meaningful economic activities. Business confidence also increased, but yet to reach pre-lockdown levels.
“About 95 per cent of businesses surveyed showed strong optimism, reflecting the improving macro-economic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects,” he revealed.
Economic Activity
He said the real Composite Index of Economic Activity (CIEA) grew by 3.6 per cent in July 2020, compared with a contraction of 10.6 per cent recorded in May, adding that consumer spending, industrial consumption of electricity, and construction activities had all reached pre-lockdown levels, while tourist arrivals and port and harbour activities were gradually edging upwards.
In contrast, Dr. Addison said imports, exports and private sector contributions to social security remained below pre-lockdown levels.
“In addition to the positive trends in the CIEA, other indicators monitored by the Bank of Ghana also point to signs of a recovery. With the exception of workplace clusters, which still remained below baseline, all other indicators embodied in the Google mobility data—commuting and travelling, visit to supermarkets and pharmacy, and residential activity have moved above baseline,” Dr. Addison.
Private Sector Managers’ View
The Ghana Purchasing Managers Index, which gauges the rate of inventory accumulation by managers of private sector firms and measures dynamics in economic activity, has also pointed to a steady rise in business activity since April 2020,” he stated.
BY Samuel Boadi