- The Bank of Ghana has revealed that the country is currently experiencing an economic slowdown
- The Central Bank explained that its survey has shown there is a slower pace of economic activity in recent times
- It added that the outbreak of the coronavirus is the likely cause of the present economic situation
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A January 2020 report by the Bank of Ghana shows that Ghana is currently experiencing an economic slowdown.
The Composite Index of Economic Activity (CIEA) showed that there has been a slower pace of economic activity in recent times.
YEN.com.gh understands that the index grew by 2.4% in January 2020, compared to 6.4% a year ago.
According to the Central Bank, the slow growth is mainly a result of Deposit Money Bank’s Credit to the private sector and domestic VAT.
A report by classfmonline.com shows that the outbreak of the coronavirus is also likely to affect the growth outlook for the year 2020.
It has also been predicted that the slow pace of demand could lead to a downturn in Ghana’s crude oil export earnings.
This, the report added, could lead to major implications for foreign inflows and tax revenues.
The Central Bank went on to report that there are possible restrictions coming from advanced economies and other emerging markets.
This, it said, could create supply chain shortages for Ghanaian businesses, with a significant impact on imports of intermediate and capital goods, as well as consumption goods.
Meanwhile, the March 2020 monetary policy report of the Bank of Ghana (BoG) shows that there is an increase in business and consumer confidence in Ghana’s economy.
According to BoG’s Consumer Confidence survey, which was conducted in February 2020, there is a rising level of consumer optimism about the economy.
Consequently, the consumer confidence index increased to 100.7 in February 2020 from 98.8 in December 2019.
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