The Bank of Ghana’s January 2024 Monetary Policy Report paints a nuanced picture of the nation’s economic health during the first eleven months of 2023.
Various sectors experienced divergent trajectories, reflecting both resilience and vulnerability.
Resilient Consumer Spending
Consumer spending, gauged by domestic VAT collections and retail sales, emerged as a standout performer in November 2023. Domestic VAT collections witnessed an impressive year-on-year surge of 128.9%, reaching GH¢1.978 billion.
Cumulatively, the total domestic VAT for the period skyrocketed by 66.6% to GH¢12.831 billion. Retail sales mirrored this strength, posting a 2.4% increase in November 2023 and a substantial cumulative growth of 30.4% for the first eleven months.
The manufacturing sub-sector exhibited positive momentum, evidenced by a remarkable 135.3% year-on-year increase in total direct taxes collected, reaching GH¢5.880 billion in November 2023.
Cumulatively, direct taxes for the first eleven months surged by 60.6% to GH¢44.432 billion. This points towards a buoyant manufacturing landscape, potentially fueled by increased economic activities.
Challenges in Construction and Transport
Contrastingly, the construction sub-sector faced headwinds, with cement sales dipping by 13.2% year-on-year in November 2023 and a cumulative decrease of 25.1% for the first eleven months.
The transport sector also encountered challenges, as new vehicle registrations declined by 14.8% in November 2023 and a significant 35.7% cumulatively for the same period.
Mixed Signals in International Trade
International trade, as reflected in container traffic at the main harbors, recorded a marginal decline. While total container traffic surged by 28.8% year-on-year in November 2023, reaching 57,738, the cumulative figure for the first eleven months dipped by 3.3% to 570,711.
Passenger Arrivals Show Promise
Passenger arrivals provided a glimmer of hope, with a substantial year-on-year increase of 25.5% in November 2023, totaling 104,157.
Cumulatively, for the first eleven months, arrivals grew by 25.8% to 1,019,841.
Ashantibiz
