The Central Bank has disclosed that Composite Index of Economic Activity (CIEA) for July this year grew by 3.6 percent compared with a contraction of 10.6 percent recorded in May 2020.
The CIEA is the Bank of Ghana’s (BoG) use of an aggregate of indexes which guides the Bank’s Monetary Policy Committee in its bi-monthly report and policy interest rate setting.
According to the Governor of the Bank of Ghana, the growth resulted in consumer spending, industrial consumption of electricity and construction related activities.
Addressing journalists at a press briefing to announce its decision on the policy rate on September 28, 2020, Dr Ernest Addison said these activities have all reached pre-lockdown three levels in the wake of the coronavirus disruptions.
“Tourist arrivals and port harbour activity are gradually edging upwards and in contrast, imports, exports, and private sector contributions to social security, remain below pre-lockdown levels,” the Governor said.
“In addition to the positive trends in the CIEA, other indicators monitored by the Bank of Ghana also point to signs of a recovery. With the exception of workplace clusters, which still remained below baseline, all other indicators embodied in the google mobility data — commuting and travelling, visit to supermarkets, pharmacy, and residential activity have moved above baseline,” he added.
Meanwhile, the central bank disclosed its decision by the Monetary Policy Committee (MPC) to keep its policy rate unchanged at 14.5 percent.
The Governor explained the decision was based on the drivers of economic growth returning to normal prospects for a good recovery.
“Consumers seem to be responding to the gradual lifting of restrictions which provides some scope for meaningful economic activities. Business confidence also increased, but yet to reach pre-lockdown levels,” Dr Addison explained.