Available information on developments through the first quarter of 2007 show that economic activity continues to be robust, underpinned by significant growth in imports and exports and strong corporate performance with the continuing load management programme in the energy sector a source of weakness in the outlook. Headline inflation continued to be stable on its downward trend but showed an up-tick in April to 10.5 percent.

The Bank of Ghana’s Composite Index of Economic Activity (CIEA) at the end of the first quarter was up by 5.2 points (1.8 percent) over the December 2006 level of 285.7, and 21.8 percent in year-on-year terms against a trend growth of 20.9 percent. The components contributing to the growth in the index were employment, exports, commercial bank credit, imports and tourism; there were some declines in port activities, cement sales and electricity consumption.

Evidence from the Bank’s surveys of Business and Consumer Confidence show that both indices of business and consumer expectations dipped slightly at the end of the first quarter from the highly favourable levels recorded in preceding quarters.

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