Ghana's economy presented a mixed picture in the first five months of 2026, according to the Bank of Ghana (BoG). While manufacturing activities showed improvement, consumer spending recorded varied performance, and the construction sector faced a downturn.
The July 2026 Monetary Policy Report from the Bank of Ghana detailed these trends. Domestic VAT collections, a key measure of consumer spending, increased by 2.8% year-on-year in May 2026, reaching GHS 1.822 billion. Cumulatively, total domestic VAT for the first five months of 2026 rose by 16.8% to GHS 9.713 billion, up from GHS 8.313 billion in the same period last year. However, retail sales, another indicator of consumer activity, declined by 3.1% year-on-year in May 2026 to GHS 269.09 million.
This mixed performance in consumer spending reflects ongoing economic adjustments. The increase in VAT collections suggests some resilience in the broader consumption base, possibly from higher prices or increased volume in certain segments. Conversely, the dip in retail sales indicates that consumers might be exercising caution or facing reduced purchasing power in specific retail categories. These trends are crucial for understanding household financial health and overall demand within the Ghanaian economy.
The Bank of Ghana's report provides these insights, drawing from various economic indicators. Dr. Johnson Asiama, Governor of the Bank of Ghana, has consistently emphasized the importance of monitoring these granular data points to inform monetary policy decisions. The report is a vital tool for policymakers and businesses to gauge economic momentum and identify areas requiring attention.
Looking ahead, the varied performance suggests that economic recovery remains uneven across sectors. Policymakers will closely monitor these trends to ensure stability and foster sustainable growth. Businesses will need to adapt to evolving consumer behavior and sectoral dynamics. The performance of manufacturing and construction will also influence employment and investment decisions in the coming months.
Manufacturing activities, measured by direct tax collections and private sector SSNIT contributions, improved in May 2026. Total direct taxes collected surged by 18.6% year-on-year to GHS 6.528 billion in May 2026. For the first five months of 2026, cumulative direct taxes increased by 16.4% to GHS 38.157 billion. Income tax (PAYE and self-employed) contributed 41.4% to this total, while corporate tax accounted for 37.1%. Private sector workers' contributions to the SSNIT Pension Scheme (Tier 1) also grew by 6.7% year-on-year to GHS 556.20 million in May 2026.
In contrast, the construction sector experienced a significant slowdown. Cement sales, a proxy for construction activity, declined by 19.1% year-on-year in May 2026 to 206,242.11 tonnes. Cumulatively, cement sales for the first five months of 2026 fell by 12.7% to 1,069,461.49 tonnes. This contraction in construction could impact job creation and related industries, signaling potential challenges for infrastructure development and real estate markets.
The Bank of Ghana's detailed analysis offers a critical snapshot of Ghana's economic health. The mixed signals underscore the need for targeted policy interventions to support struggling sectors while sustaining momentum in improving areas. The report's findings will likely influence future monetary policy statements and government economic strategies.