Business confidence survey depicts modest recovery

The sentiments of businesses in Ghana, as measured by the index derived from the Bank of Ghana’s (BoG) latest Business Confidence Survey, has depicted a modest improvement in the confidence of business owners and managers as to the prospect of their businesses going forward.

The latest survey, conducted in June 2020 depicts that confidence has increased, from a baseline level of 100 percent, to 88.0 percent in June 2020 compared to 84.1 percent in the previous survey conducted in April 2020. However, the index remained far below pre-pandemic levels.

Low consumer demand and effects of border closure on businesses were cited as the key concerns for businesses.

This economic indicator measures the amount of optimism or pessimism that business managers have about the prospects of their companies, as well as providing an overview of the state of the economy.

Consumer Confidence

Results from the BoG’s latest confidence surveys also showed modest recovery in consumer confidence in June 2020, reflecting a rebound in optimism among households about current and future economic conditions, amid COVID-19.

Composite Index

Latest data from the Ghana Statistical Service point to a moderation in the pace of economic growth. The latest real GDP outturn showed that the first quarter grew by 4.9 percent in 2020 compared with 6.7 percent in the same period of last year.

The Bank of Ghana’s Composite Index of Economic Activity (CIEA) contracted sharply by 10.6 percent in May 2020 compared to 5.6 percent growth in May The Governor of the BoG, Dr. Ernest Addison indicated that industrial 2019. The data also shows that the contraction was broad-based and reflects the impact of the COVID-19 pandemic on the domestic economy.