Consumer spending grows strongly in quarter 3, 2022; manufacturing activities also improve – BoG

Consumer spending, proxied by domestic VAT collections and retail sales, posted a positive performance in September 2022, compared with the corresponding period in 2021.

According to the Bank of Ghana’s November 2022 Monetary Policy Report, Domestic VAT collections increased by 19.9% on a year-on-year basis to ¢755.53 million, from ¢630.34 million.

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Cumulatively, total domestic VAT for the first three quarters of 2022 went up by 20.3% to ¢6.073 billion compared with ¢5.049 billion for the corresponding period of last year.

Retail sales increased by 8.9% (year-on-year) to ¢118.78 million in September 2022, up from the ¢109.10 million recorded in the same period in 2021.

On a month-on-month basis, retail sales declined marginally by 1.1% in September 2022 from ¢120.10 million in the preceding month. In cumulative terms, retail sales for the first three quarters of 2022 went up by 4.9%.

Manufacturing Activities improved in September  

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 (Tier-1), improved in September 2022.

Total Direct Taxes collected increased by 30.0% (year-on-year) to ¢4.004 billion in September 2022, relative to ¢3.080 billion recorded in a similar period in 2021.

Cumulatively, total direct taxes collected for the first three quarters of 2022 went up by 25.2% to ¢23.058 billion, from ¢18.418 billion for the same period in 2021.

In terms of contributions of the various sub-tax categories, corporate tax accounted for 57.1%, income tax (PAYE and self-employed) accounted for 28.6%, while “Other Tax Sources” contributed 14.3%.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 14.0% (year-on-year) to ¢245.89 million in September 2022, from ¢215.67 million collected during the corresponding period in 2021.

Cumulatively, for the first three quarters of 2022, the contribution grew by 20.8% to ¢2.293 billion, relative to ¢1.898 billion recorded in the same period in 2021.

Construction Sector Activities

Activity in the construction sub-sector, proxied by the volume of cement sales, declined by 20.0% (year-on-year) in September 2022 to 255,045.87 tonnes, down from 318,655.90 tonnes recorded a year ago.

On a month-on-month basis, total cement sales dipped by 9.1% in September 2022 compared with the 280,707.85 tonnes recorded in August 2022.

Cement sales for the first three quarters of 2022 went down by 15.6%to 2,623,228.51 tonnes, from 3,108,877.03 tonnes for the same period of 2021.

The decline in total cement sales was due to a slowdown in construction activities during the review period.

Vehicle Registration

Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing Authority (DVLA), declined by 31.9% to 12,310 in September 2022, from 18,089 vehicles registered during the corresponding period of 2021.

Cumulatively, vehicles registered by the DVLA within the first three quarters of 2022 decreased by 13.3% to 192,197 from 221,569 recorded a year ago.

Passenger Arrivals at the Airport

International tourist arrivals increased in September 2022 by 24.2% to 79,637 tourists compared to a similar period in 2021.

Compared to August 2022, tourist arrivals dipped by 7.9%.

For the first three quarters of 2022, there were 645,980 tourist arrivals recorded at KIA and the land borders compared with 420,075 for the corresponding period in 2021, representing a growth of 53.8%.

The year-on-year increase in tourist arrivals reflected the easing of travel restrictions over the review period.

Ports and Harbours Activity

International trade at the country’s 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 18.9%, year-on-year, to 50,807 in September 2022, down from 62,656 for a similar period in 2021.

In cumulative terms, total container traffic for the first three quarters of 2022 dipped by 13.2% to 502,530 compared with 579,202 for the corresponding period of last year. The relative decline in port activities was due to a slowdown in international trade activities over the review period amid ongoing geopolitical tensions.

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Source: MYJOYONLINE.COM