Consumer spending showed mixed trends in the first quarter of 2026, with a sharp increase in domestic Value Added Tax (VAT) collections pointing to stronger spending activity, even as retail sales slowed compared with the same period last year.
This is according to the Bank of Ghana’s May 2026 Monetary Policy Report, which showed that domestic VAT collections rose 35.7% year-on-year to GH¢2.06 billion in March 2026, up from GH¢1.52 billion recorded in March 2025.
For the first quarter of the year, total domestic VAT collections increased 20.8% to GH¢5.82 billion, compared with GH¢4.82 billion during the corresponding period in 2025.
The report also showed that retail sales eased on an annual basis. Retail sales declined by 1.9 percent to GH¢262.84 million in March 2026 from GH¢268.00 million recorded in March 2025.
However, compared with the previous month, retail activity improved, with sales rising 13.2% from GH¢232.25 million in February 2026.
Despite the year-on-year decline recorded in March, retail sales remained positive for the quarter. Cumulative retail sales for the first three months of 2026 increased by 5.0% compared with the same period last year.
The latest figures suggest that while consumer spending remained supported during the first quarter, spending patterns varied across different indicators.
Domestic VAT collections continued to record strong growth, whereas retail sales showed a softer performance on an annual basis but recovered from the previous month, reflecting mixed consumer spending conditions at the start of 2026.
