Bank of Ghana reports consumer spending, manufacturing activities surge in first half 2024

The Bank of Ghana (BoG) says the real sector indicators, notably consumer spending activities and manufacturing activities, increased in the first half of 2024. 

The central bank said consumer spending, represented by domestic VAT collections and retail sales, posted a positive performance in May 2024 compared with the corresponding period in 2023. 

The bank, in its July Monetary Policy report, revealed that domestic value-added tax (VVAT) collections increased by 28.7 per cent on a year-on-year basis to GH¢1.36 billion.  

“Cumulatively, total domestic VAT for the first five months of 2024 went up by 14.8 per cent to GH¢6.22 billion, compared with GH¢5.42 billion for the corresponding period of last year. Retail sales increased by 25.5 per cent (year-on-year) to GH¢200.27 million in May 2024, up from the GH¢159.57 million recorded in the same period in 2023. “ 

“On a month-on-month basis, retail sales improved by 6.0 percent in May 2024, from GH¢188.87 million in the preceding month. In cumulative terms, retail sales for the first five months of 2024 went up by 19.1 per cent,” the report said. 

It said activities in the manufacturing sub-sector, measured by trends in the collection of direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1), improved in May 2024. 

It noted that total direct taxes increased by 43.7 percent (year-on-year) to GH¢4.11 billion in May 2024, relative to GH¢2.86 billion recorded in May 2023. 

The BoG said cumulatively, total direct taxes collected for the first five months of 2024 went up by 31.6 per cent to GH¢22.19 billion, compared to ¢16.86 billion recorded in the first five months of 2023. 

The central bank, however, noted that income tax accounted for 48.8 per cent, the highest in the sub-tax categories, whereas corporate tax accounted for 38.4 per cent, and “other tax sources” contributed 12.8 per cent. 

According to the BOG, the SSNIT contributions increased by 28.8% to GH¢1.97 billion in the first five months of 2024, up from GH¢1.53 billion in the same period in 2023. 

The total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 39.6 per cent in year-on-year terms to GH¢470. million in May 2024, relative to GH¢337.23 million collected in 2023, the report said. 

Source: GNA 

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