Confidence in Ghana’s economy has surged to its highest level in seven years, according to the Bank of Ghana’s latest surveys, reflecting easing inflationary pressures and renewed optimism about macroeconomic conditions.
Both consumer and business confidence indices showed significant improvement in the first quarter of 2025.
On the domestic front, the central bank’s high-frequency indicators signaled continued momentum in economic activity.
The Composite Index of Economic Activity (CIEA) grew by 2.3% year-on-year in March 2025, up from 1.0% during the same period last year. Key contributors to this growth included increased exports, higher credit to the private sector, and a rebound in construction activity.
Additionally, the Ghana Purchasing Managers’ Index (PMI) rose above the 50-point threshold, indicating expansion in the private sector as both output and new orders recorded gains, further pointing to an improved growth outlook.
However, the global backdrop remains challenging. The first four months of 2025 have been marked by sluggish global growth, uneven disinflation trends, and tight financial conditions.
These challenges are attributed to shifting trade policies in the United States, including new tariffs and retaliatory measures, which have heightened policy uncertainty, dampened investor sentiment, and weighed on global growth prospects.
