Monetary Policy Report shows 11.5% rise in domestic VAT collections

Ghana's latest economic indicators revealed a mixed performance for the first seven months of 2026, with significant growth in tax revenue and labor demand tempered by declines in the construction and retail sectors. According to the July 2026 Monetary Policy Report, domestic Value Added Tax (VAT) collections rose by 11.5% to reach GH‵2.142 billion during the month. This contributed to a cumulative VAT total of GH‵13.617 billion for the year to date, representing a 13.8% increase over the same period in 2025.

The labor market showed robust expansion as job advertisements surged by 32.4% year-on-year, with 3,578 positions advertised in July. This growth in hiring sentiment was supported by a 6.1% increase in the number of private-sector contributors to the SSNIT pension scheme, which now includes over 1.17 million individuals. Furthermore, total direct tax collections saw a substantial surge of 53.5%, amounting to GH‵8.085 billion, while contributions to the SSNIT scheme specifically from manufacturing and other sectors rose by 11.2% to GH‵570.59 million.

Trade and transport indicators also provided positive signals for the economy. New vehicle registrations recorded a dramatic 51.7% increase, totaling 31,909 vehicles in July alone. In the maritime sector, laden container traffic at the Tema and Takoradi ports grew by 29% year-on-year to 96,966 containers, signaling heightened international trade activity. This was complemented by a 23.1% rise in passenger arrivals at Ghana’s international airport and land borders, with 137,467 arrivals recorded during the month, up from 111,631 in July 2025.

However, the report highlighted ongoing challenges in the construction and retail industries. Cement sales, a key proxy for building activity, fell by 4.9% year-on-year in July and recorded a cumulative decline of 10.3% for the first seven months of the year. Similarly, retail sales contracted by 1.5% to GH‵236.41 million in July, marking a 0.8% decline from the previous month. Despite these specific downturns, the broader data suggests a period of transition for the Ghanaian economy, with trade and tax revenue providing a strong foundation for fiscal stability.