Ghana's economy achieved significant growth, with the Bank of Ghana's Composite Index of Economic Activity (CIEA) expanding by 12.6% year-on-year in March 2026. This strong performance follows a 2.3% growth in the same period last year. Economic activity strengthened considerably during the first quarter of 2026.
This growth was fueled primarily by increased private sector credit, higher consumption levels, and expanded industrial production. Additionally, improved international trade activity contributed to the economic upswing. Despite this economic expansion, confidence among businesses and consumers moderated in April 2026.
This shift in sentiment impacts the broader economic landscape, highlighting a disconnect between growth figures and public perception. The Bank of Ghana's decision to maintain its Monetary Policy Rate at 14% reflects ongoing concerns. This rate stability aims to counter rising external uncertainties and emerging inflationary pressures in the economy.
The Bank of Ghana's latest surveys revealed a decline in confidence indices. The Consumer Confidence Index fell to 113.4 in April 2026 from 117.7 in February 2026. Simultaneously, the Business Confidence Index eased to 108.1 from 110.1 over the same two-month period. These figures indicate a cooling of optimism.
The Central Bank attributed this softening sentiment primarily to concerns regarding the domestic effects of the ongoing conflict in the Middle East. Global geopolitical events are clearly influencing local economic outlooks. This external factor presents a challenge to sustained confidence.
Further indicators suggest a moderation in private sector activity. Ghana's Purchasing Managers’ Index (PMI) dropped to 50.3 in April 2026 from 51.4 in March 2026. A PMI above 50 generally indicates expansion, but the decline signals slower growth. This trend suggests businesses are becoming more cautious.
The Bank of Ghana announced its decision to keep the Monetary Policy Rate unchanged at 14% after its 130th Monetary Policy Committee (MPC) meeting. This decision, made on Wednesday, May 20, 2026, underscores the Central Bank's vigilance. They are balancing domestic economic improvements against global risks. This cautious approach aims to manage inflation while supporting growth.
Moving forward, policymakers will monitor how geopolitical developments continue to affect local sentiment and direct investment. Businesses and consumers will likely react to any escalation or de-escalation of international tensions. The Bank of Ghana's future policy decisions will depend on these evolving conditions. Further data on inflation and growth will guide these choices.