Ghana’s economy delivered a stronger-than-expected performance in the second quarter of 2025, recording a 6.3% year-on-year expansion, according to data released by the Ghana Statistical Service (GSS).

This marks an acceleration from the 5.7% growth posted during the same period last year, offering fresh evidence of resilience in the face of global and domestic economic headwinds.

The growth momentum was largely powered by the services sector, which surged by an impressive 9.9% compared to just 2% in the second quarter of 2024. Non-oil GDP also expanded robustly at 7.8%, offsetting a decline in oil production. Government Statistician Alhassan Iddrisu emphasized that these figures highlight Ghana’s recovery from its most severe economic crisis in decades.

“This growth reflects strengthening investor confidence, improving macroeconomic stability, and the impact of ongoing reforms,” he stated, noting that easing inflation has provided additional support to businesses and consumers.

Agriculture: The Weak Link in Growth Momentum

Despite the upbeat headline growth, analysts have raised concerns over the slowdown in agriculture, which many regard as the lifeblood of Ghana’s economy. Agriculture’s growth slipped from 6.6% in the first quarter to 5.2% in Q2 2025, raising questions about its sustainability and capacity to drive inclusive development.

Nelson Kuagbedzi, Head of Finance at Merban Capital, cautioned that the government must not overlook the sector even as services drive short-term gains.

“We may attribute the growth to economic stability, confidence in the economy, and government policies. However, there has been sluggish growth in agriculture and industry. Policy intervention is needed, especially in agriculture, which remains the lifeblood of our economy.”
Nelson Kuagbedzi

Agriculture has historically been a stabilizing force, supporting livelihoods, ensuring food security, and contributing significantly to export revenues. A prolonged slowdown could undermine rural incomes and create structural imbalances in Ghana’s economic base.

Industry Also Loses Steam

The industrial sector compounded concerns by slowing from 3.4% growth in Q1 to just 2.3% in Q2. This was driven partly by weaker performance in construction and manufacturing, sectors that are critical for job creation and infrastructure development. Analysts warn that if both agriculture and industry continue to decelerate, the services-led growth trajectory may not be sustainable in the medium term.

One bright spot in Ghana’s economic picture has been inflation, which fell to 11.5% in August 2025, its lowest level since October 2021. This outperformed the Finance Ministry’s end-of-year projection of 11.9% and has bolstered consumer confidence. Lower inflation, combined with GDP growth momentum, is expected to attract greater investor interest as Ghana continues to implement IMF-backed reforms.

International and domestic investors have already taken note of Ghana’s recovery story. The combination of easing price pressures, a stable currency outlook, and rising non-oil GDP has reinforced optimism about the economy’s future prospects. However, the agriculture question continues to temper that optimism.

Policy Interventions Needed for Balanced Growth

Experts insist that the government’s economic strategy must be recalibrated to ensure agriculture and industry do not lag behind. Proposed interventions include increased mechanization support for farmers, enhanced irrigation infrastructure, improved access to credit, and value-addition through agro-processing.

Such measures would not only boost productivity but also provide a buffer against global shocks and ensure that growth translates into inclusive development for both urban and rural populations.

“Agriculture remains the backbone of Ghana’s economy. Without deliberate policy support, the sector risks underperforming at a time when it is most needed to anchor stability.”
Nelson Kuagbedzi

While Q2 2025 GDP results have instilled confidence, sustaining the momentum will require a holistic approach. Services may continue to shine, but without strong support for agriculture and industry, Ghana’s growth risks becoming uneven.