Economic activity in Ghana significantly strengthened during the first three months of 2026. The Bank of Ghana's Composite Index of Economic Activity (CIEA) shows a 12.6% rise year-on-year in March 2026. This is a substantial increase from the 2.3% growth recorded in March 2025. The index measures key indicators of real economic performance.
Several factors contributed to this strong economic performance. Growth was driven by increased credit extended to businesses. Consumption spending also rose. Industrial production expanded. International trade activities showed improvement. These elements together boosted the overall economic activity index. The data comes from the Bank of Ghana's analysis of high-frequency indicators.
This economic growth occurs against a backdrop of softening business and consumer confidence. Surveys conducted in April 2026 indicate this decline. This is in contrast to the more optimistic outlook in February 2026. Concerns about the global economy, particularly the Middle East conflict, are affecting sentiment. The domestic implications of these global events are a worry for many businesses and consumers.
Ghana's Purchasing Managers' Index (PMI) also reflects this shift in sentiment. The PMI fell to 50.3 in April 2026, down from 51.4 in March 2026. A PMI reading above 50 typically indicates economic expansion. This decline suggests a slowdown in momentum. Higher input costs for businesses are cited as the main reason for this drop. The PMI tracks changes in purchasing, production, and prices for many companies.
The Bank of Ghana monitors these indicators closely. Dr. Johnson Asiama, a key figure at the Central Bank, has highlighted the importance of these economic signals. He noted that while economic activity is robust, the softening sentiment requires attention. Policymakers will need to balance supporting growth with addressing concerns that dampen confidence. The upcoming economic reviews will likely focus on these trends.
The divergence between strong economic activity and weaker sentiment presents a complex picture for Ghana's economy. Investors and businesses will watch future inflation data closely. They will also monitor the Bank of Ghana's response. Further analysis of consumer spending patterns will be crucial. The impact of global events on domestic markets requires careful management. The resilience of Ghana's economy will be tested as these factors play out.