The latest figures on the Ghanaian economy have underlined the country’s economic crisis and put more pressure on the organisers of this year’s African Games in Accra ©Getty Images

The latest figures on the Ghanaian economy have underlined the country’s financial crisis and put more pressure on the organisers of this year’s African Games in Accra.

Data from the Bank of Ghana indicates a downward trajectory of both consumer and business confidence in the general economy since the end of 2020, as reported by myjoyonline.

Ghana's former President John Mahama has already led calls for the cancellation of the Games with the nation facing more than 50 per cent inflation, growing debt and a sharp decline in its credit currency since the start of the year.

George Haldane-Lutterodt, a former President of the Ghana Athletics Association and a well-known economist in the country, has also claimed that the Games should be postponed or cancelled.

Both the Consumer and Business Confidence Indices have consistently been below the 100 mark since January 2021.

The confidence indices for consumers and businesses dropped to all-time lows of 73.9 and 72.6 respectively in October 2022, although in December 2022 they improved to 79.2 and 75.7.

New figures show consumer and business confidence in the Ghanaian economy have plummeted during the ongoing economic crisis ©Getty Images
New figures show consumer and business confidence in the Ghanaian economy have plummeted during the ongoing economic crisis ©Getty Images

The consumer confidence index (CCI) measures how optimistic or pessimistic consumers are regarding their expected financial situation.

The CCI is based on the premise that if consumers are optimistic, they will spend more and stimulate the economy but if they are pessimistic then their spending patterns could lead to an economic slowdown or recession.

According to the Organisation for Economic Co-operation and Development, an indicator above 100 signals a boost in the consumers’ confidence towards the future economic situation, as a consequence of which they are less prone to save, and more inclined to spend on major purchases.

Values below 100 indicate a pessimistic attitude towards future developments in the economy, possibly resulting in a tendency to save more and consume less.

The annual growth of Bank of Ghana’s Real Composite Index of Economic Activity also showed a dip to an all-time low in November 2022 of -6.2 per cent.

This is indicative of a worsening outlook on domestic economic activity.

This indicator has moved from 39.4 per cent in April 2021 and slid continuously to 10.2 per cent in November 2021 and by November 2022 moved to -6.2 per cent.

The second half of the 2022 economic year was characterised by high fuel prices, high inflation and excessive depreciation of the Ghanaian currency.