The May 2023 Monetary Sector Report from the Central Bank of Ghana has disclosed that real sector activities recorded a mixed performance in the first quarter of 2023. The research offered an in-depth analyses of the economy’s main sectors, highlighting both emerging good and negative tendencies.
Domestic VAT revenues increased dramatically year over year, recording a staggering surge of 92.4%, amounting to ¢1.250 billion, compared to ¢649.93 million during the corresponding period last year. Cumulatively, total domestic VAT for the first quarter of 2023 rose by an impressive 76.8% to reach ¢3,196 billion, up from ¢1.808 billion in the same period of the previous year.
The retail sector also exhibited strong growth, with retail sales experiencing a robust increase of 44.9% to ¢165.20 million in March 2023, as opposed to ¢114.05 million recorded during the same period in 2022.
Additionally, as compared to the month before, retail sales in March 2023 showed a positive increase of 19.2% on a monthly basis. Retail sales increased cumulatively by 30.3% in the first quarter of 2023.
Furthermore, activities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme, improved in March 2023.
Total direct taxes collected increased by 37.7% (year-on-year) to ¢4.788 billion in March 2023, relative to ¢3.478 billion recorded in the same period in 2022.
Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 22.7% in year-on-year terms to ¢317.61 million in March 2023, from ¢258.80 million collected during the corresponding period in 2022.
Construction Activity Decreases
Nevertheless, not all industries saw expansion. The amount of cement sales fell by 29.3%, reflecting the large fall in the construction sub-sector. Total cement sales in March 2023 showed a 12.8% month-over-month increase compared to February 2023.
However, the first quarter of 2023 witnessed a notable decline of 28.6% in cement sales, with total sales amounting to 715,070.24 tonnes, in contrast to 1,001,259.90 tonnes during the same period in 2022. The decline in cement sales was primarily attributed to a slowdown in construction activities throughout the review period.
Vehicle Registration Increases, Passenger Arrivals Improve 33%
Transport-sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing Authority (DVLA), declined by 44.1% to 12,847 in March 2023, from 22,978 vehicles registered during the corresponding period of 2022.
Cumulatively, vehicles registered by the DVLA within the first quarter of 2023 decreased by 45.2% to 54,568 from 99,514 recorded a year ago.
Despite the challenges faced by certain sectors, the report highlighted positive growth in passenger arrivals, indicating an encouraging trend in the transport sector. In March 2023, passenger arrivals demonstrated a remarkable increase of 33.8% in year-on-year terms, with 86,115 arrivals, compared to 64,358 arrivals during the same period a year ago.
Moreover, compared to February 2023, passenger arrivals witnessed a significant upswing of 15.4%. Cumulatively, for the first quarter of 2023, Ghana recorded 247,834 arrivals at international airports and land borders, representing a growth of 44.8% in comparison to the 171,145 arrivals during the corresponding period in 2022.
Decline In Both International Trade At The Two Major Ports, Labour demand
While the real sector activities displayed mixed performance, International trade at the two main harbours (Tema and Takoradi), as measured by laden container traffic for inbound and outbound containers, declined during the period under review. Total container traffic decreased by 5.7%, year-on-year to 53,615 in March 2023, from 56,879 in March 2022.
The relative decline in port activities, the report, said it was due to a slowdown in international trade activities over the review period, amid ongoing geopolitical tensions.
Furthermore, the report shed light on labor market dynamics, indicating a decline in labor demand. The number of jobs advertised in selected print and online media showed a decrease in April 2023 compared to the corresponding period in the previous year.
A total of 2,581 job adverts were recorded, representing a decline of 7.1% in year-on-year terms, as compared to the 2,777 jobs advertised during the same period in 2022. On a month-on-month basis, the number of job vacancies also witnessed a decrease of 6.3% from the 2,754 jobs advertised in March 2023.
Cumulatively, for the first four months of 2023, the total number of advertised jobs declined by 2.9% to 10,707, down from 11,029 during the same period in 2022.
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