Consumer confidence dips, economic growth shows promising signs

Ever wondered how far your paycheck stretches in dollars? Or perhaps you’ve recently found yourself crunching numbers to make ends meet? According to data from the Bank of Ghana, it seems you’re not alone in feeling the pinch, as both business and consumer confidence took a hit.

The latest confidence surveys conducted in April 2024 painted a picture of cautious optimism tinged with concern. While consumer sentiment showed a slight dip, with the index dropping to 87.7 percent from February’s 92.0 percent, business confidence also saw a decline, falling from 96.0 percent to 92.6 percent over the same period.

These marginal shifts are attributed to a variety of factors, including recent fluctuations in exchange rates and erratic power supply, which have collectively increased operational costs for businesses. As these costs get passed down the line, consumers are feeling the squeeze too.

Despite these challenges, there’s a glimmer of hope on the horizon. High-frequency real sector indicators signal a sustained uptick in economic activity throughout the first quarter of 2024. In fact, March 2024 saw an impressive average annual growth rate of 11.9 percent.

Digging deeper into the numbers, the updated real composite index of economic activity recorded a 2.1 percent annual growth in March 2024. This growth is fueled by various factors, including increased imports, a surge in private sector contributions to SSNIT, and a boost in tourist arrivals.

So while there may be bumps in the road ahead, the data suggests that Ghana’s economy is resilient and on the path to recovery.

source: city newsroom

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