Economic activities begin to pick up

Economic activities have begun picking up in the wake of the ongoing election petition in the country. Although the Composite Index of Economic Activity slowed during the first quarter of 2013, it has begun to pick up.

The Bank of Ghana’s Composite Index of Economic Activity (CIEA) showed a marginal pickup during the second quarter of 2013. On a year-on-year basis, the index showed a growth of 3.4 percent compared to a 0.6 percent contraction in March 2013.

Components of the CIEA recorded positive yearly growth rates, according to the Central Bank include, sales of key manufacturing entities, and Deposite Money Banks credit to the private sector.

Additionally, Surveys conducted by the central bank in July indicated mixed sentiments by businesses and consumers. Consumer sentiments improved as indicated in the outlook for the economy as well as willingness to purchase household durables.

The Consumer Confidence Index increased from 96.1 in April to 101.1 in June. Business sentiments however, softened with the index declining from 99.0 in March to 92.4 in June 2013.

According to data from the Central Bank, economic activity contracted during the first quarter of the year, in contrast to the high growth rate recorded in 2012. The real CIEA contracted 0.6 percent on a year-on-year basis in the first quarter of 2013 compared with 14.8 percent growth observed during the same period of 2012.