The recently released Bank of Ghana Quarterly Economic Bulletin for Q3 2023 reveals a promising upswing in consumer spending, as indicated by key indicators such as domestic VAT collections and retail sales.
In comparison to the corresponding period in 2022, Q3 2023 reflects a noteworthy improvement in economic activity.
Domestic VAT Collections Surge by 38.0% Year-on-Year
Domestic VAT collections experienced robust growth of 38.0% year-on-year, reaching GH¢3,095.14 million during Q3 2023.
This notable increase, compared to the GH¢2,242.89 million recorded in the same quarter of 2022, underscores a buoyant economic landscape. However, it is noteworthy that there was an 8.3% decline from the preceding quarter (Q2 2023), where GH¢3,374.01 million was collected.
This fluctuation in domestic VAT collections may be indicative of dynamic economic factors at play, and the Central Bank will be closely monitoring subsequent quarters to discern underlying trends.
Retail Sales Surge by 40.6% Year-on-Year
The report also highlights a substantial surge in retail sales, demonstrating a year-on-year growth of 40.6% in Q3 2023.
Retail sales soared to GH¢498.57 million, a notable increase from the GH¢354.62 million reported in the corresponding quarter of 2022.
This surge is attributed to heightened household spending, indicating increased consumer confidence and economic resilience.
The observed increase in retail sales aligns with broader economic indicators, suggesting a positive correlation between consumer spending and overall economic health.
The report posits that the upturn in retail sales is primarily driven by increased household spending during the review period. This signals a positive sentiment among consumers, contributing to the vibrancy of the retail sector.
The Q3 2023 Bank of Ghana Quarterly Economic Bulletin paints a promising picture of Ghana’s economic trajectory, with robust growth in both domestic VAT collections and retail sales. The sustainability of this positive trend will be closely monitored by the Central Bank as the nation progresses into subsequent quarters.