Consumer and business confidence in Ghana has rebounded sharply, signaling renewed optimism about the country’s economic prospects after a year of subdued sentiment and uneven growth.
According to data from Bank of Ghana, the Consumer Confidence Index rose to 103.6 in April 2025, a notable jump from its low of 81.2 in mid-2024. The Business Confidence Index followed a similar path, reaching 102.2 in April, up from 88.8 less than a year earlier.
The resurgence in sentiment comes amid a complex but improving macroeconomic landscape. The Composite Index of Economic Activity (CIEA), a key gauge of real-time economic momentum, has shown an erratic path over the past year, reflecting the fragile nature of recovery.
After swinging between gains and contractions throughout 2023 and 2024, the CIEA posted negative growth rates in January (-3.8%) and February 2025 (-2.7%), before turning positive in March 2025 (2.6%). This shift suggests that the economy may be entering a more stable growth phase after a prolonged period of volatility.
Several factors appear to be underpinning the improved outlook. Inflation has begun to moderate, the cedi has stabilized, and fiscal management has become more predictable. These developments have helped ease pressure on households and restored some confidence in the direction of government policy.
While the broader economy remains in a delicate state, the rebound in both consumer and business sentiment points to rising expectations of future stability. In retail and services, early signs of improved demand are emerging, while businesses are showing greater willingness to invest and expand after holding back through much of 2024.
Still, analysts caution that sustained recovery will depend on translating sentiment into consistent real sector performance.
