BoG’s CIEA contracts by 6.2%

The Bank of Ghana’s Composite Index of Economic Activity (CIEA) as measured by economic activities within the country, contracted by 6.2% in November 2022, says the Monetary Policy Committee (MPC) of the Central Bank.

Governor of the BoG, Dr Ernest Addison speaking during the press briefing of the 110th MPC meeting, remarked that the 6.2% contraction in the CIEA compares unfavourably with the growth of 10.2% in the same period of 2021.

According to the Governor, the major items that weighed down the Index during the period were port activity, cement sales, imports, and industrial consumption of electricity.

The bank’s latest confidence surveys conducted in December 2022 and underpinning its CIEA pointed to some marginal improvement in sentiments.

Consumer confidence improved on the back of the recent reductions in ex-pump petroleum prices and transportation fares.

and optimism about company and industry prospects, following the rebound of the
local currency during the month.

The survey findings were broadly aligned with
observed trends in Ghana’s PMI, which improved to 47.0 percent in December 2022 from 44.9 percent in the previous month.

Meanwhile, private sector credit growth, the MPC noted, picked up, partly reflecting continued portfolio rebalancing by banks and revaluation effects on foreign currency denominated credit.

In nominal terms, private sector credit increased by 31.8 percent in December 2022, compared with 11.2 percent in December 2021.

In real terms, however, private sector credit contracted sharply by 14.5 percent, compared with 1.3 percent contraction over the review period, reflecting sustained price pressures.