Central bank of Ghana says economy is on recovery path despite shrink of 3.2 percent in second quarter

The central bank of Ghana said that the economy is on a recovery path as its measure of economic activity shows positive signs despite the country's economy shrinking by 3.2 percent in the second quarter of the year, according to a news report Ghana Web.

"High-frequency data available to the Bank of Ghana show some green shoots of a rebound in economic activity. From the Bank of Ghana’s surveys in August, consumer confidence is bouncing back strongly and is currently above pre-lockdown levels," the Governor of the Bank of Ghana, Dr. Ernest Addison, said after the Monetary Policy Committee (MPC) had met to review the health of the economy.

Dr. Addison told journalists at the MPC press briefing earlier this week that consumers are beginning to respond positively to the easing of COVID-19 restrictions by the government.

"Consumers seem to be responding to the gradual lifting of restrictions—providing some scope for meaningful economic activities. Business confidence also increased but is yet to reach pre-lockdown levels. About 95 percent of businesses surveyed showed strong optimism, reflecting the improving macroeconomic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects," the Governor said.

The central bank’s real Composite Index of Economic Activity (CIEA) grew by 3.6 percent in July 2020, compared with a contraction of 10.6 percent recorded in May.