Consumer spending in Ghana recorded a positive start to 2026, with domestic VAT collections and retail sales increasing compared to the same period last year, according to the latest Monetary Policy Report.
Data from the Bank of Ghana showed that domestic VAT collections rose by 7.1 percent year-on-year to GH¢1.799 billion in January 2026, up from GH¢1.680 billion in January 2025. Retail sales also expanded by 16.6 percent to GH¢277.88 million over the same period.
Despite the annual growth, both indicators recorded declines on a month-on-month basis. Domestic VAT fell by 13.1 percent from GH¢2.069 billion in December 2025, while retail sales dropped sharply by 41.1 percent.
The data suggests that while underlying consumer demand remains resilient, short-term spending patterns may be influenced by seasonal factors and post-holiday adjustments.
Manufacturing Sector Records Improvement
Activity in the manufacturing sector also showed signs of growth, supported by increased tax collections and pension contributions. Total direct taxes rose by 9.0 percent year-on-year to GH¢5.802 billion in January 2026.
Corporate tax accounted for 40.7 percent of total collections, with income tax contributing 40.3 percent and other tax sources making up 18.9 percent.
Private sector contributions to the Social Security and National Insurance Trust pension scheme increased by 16.8 percent to GH¢551.97 million, reflecting improved labour market activity.
However, direct taxes declined significantly on a monthly basis, falling by 64.4 percent from December’s GH¢16.305 billion, pointing to cyclical revenue patterns.
Construction Sector Weakens
In contrast, the construction sector recorded a slowdown. Cement sales, a key indicator of activity, declined by 7.7 percent year-on-year to 206,798.89 tonnes in January 2026.
On a monthly basis, cement sales remained relatively stable, suggesting limited momentum in construction growth.
Overall, the data points to a mixed economic outlook, with consumer spending and manufacturing showing resilience, while construction activity lags.
The trends highlight the need for sustained policy support to maintain growth momentum across sectors and stabilise short-term fluctuations in economic activity.
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