Domestic economic activity rebounds in Q2 2021 – BoG

Mon, 18 Oct 2021 Source: www.ghanaweb.com

• Economic activity in Q2 2021 witnessed a rebound

• This was based on consumer spending, retail sales and other indicators

• This was contained in the BoG quarterly economic bulletin for Q2 2021

Ghana’s domestic economy showed a rebound in activity for the second quarter of 2021, the Bank of Ghana has revealed.

The latest quarterly economic bulletin of the central bank explained this was based on gains made in the previous quarter (Q1).

“Indicators on consumer spending, retail sales, cement sales, international tourist arrivals, and vehicle registration all picked up during the review quarter, signalling a gradual recovery from negative impacts of the COVID-19 pandemic”

The BoG said headline inflation however edged down further to 7.8 percent at the end of the second quarter of 2021, from 10.3 percent at the end of the first quarter of 2021.

“The decline in inflation was due to a fall in both food and non-food inflation from 10.8 percent to 7.3 percent, and 10.0 percent to 8.2 percent, respectively,” it explained.

Further expanding on economic activity indicators, the Bank of Ghana said consumer spending, measured by domestic VAT collections and retail sales, improved in the second quarter of 2021 compared with figures recorded in the corresponding period of 2020.

“Domestic VAT collections grew by 34.3 percent (year-on-year), to GH¢1,719.64 million, relative to GH¢1,280.39 million collected during the corresponding quarter in 2020. Similarly, domestic VAT increased by 9.1 percent compared with GH¢1,576.61 million collected for the first quarter of 2021.”

“Retail sales increased by 31.6 percent (year-on-year), to GH¢337.43 million during the second quarter of 2021, from GH¢256.50 million recorded in the corresponding quarter of 2020. The comparative improvement in retail sales could be attributed to increased household consumption during the review period,” it added.

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Source: www.ghanaweb.com
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