The Bank of Ghana’s (BoG) Composite Index of Economic Activity (CIEA) for January 2021 recorded an annual growth of 13.9 percent compared to the 3.4 percent recorded in the corresponding period of 2020 – increased by 10.5 percentage points for the period under review.
The annual growth recorded according to the Central Bank is the highest since December last year when it was 8.3 percent, adding the economy is on a rebound with sustained momentum in the pick-up of economic activity.
Drivers of economic activity for the period under review the Bank pointed out were; construction, imports, industrial consumption of electricity, domestic VAT, passenger arrivals at the airport, and port activity.
That notwithstanding, the recorded growth in the CIEA however faces some risks as results from the Bank’s latest confidence surveys conducted in February 2021 showed some softening of both consumer and business sentiments.
The softening of consumer confidence, the Bank notes, is reflected by heightened concerns about the potential reimposition of restrictions following the upsurge in COVID-19 cases in the first two months of the year.
Similarly, business sentiments about the general economic situation also deteriorated on concerns that re-imposition of restrictions would further have detrimental consequences on the attainment of their short-term goals.
However, with the commencement of the AstraZeneca Covid-19 vaccine rollout and gradual lifting of remaining restrictions, a rebound and strengthening of consumer and business confidence is expected.
The BoG’s CIEA measures changes in the level of economic activity.
