Ghana has experienced growth in its economy in recent months, signaling gradual economic restoration and stability, while the industry as a sector suffers.
According to the latest Bank of Ghana’s Macroeconomic and Financial data, Ghana’s GDP adjusted for price change hit GHȻ 47.4 billion in the second quarter of 2025, a drop from the GHȻ53.8 billion recorded in the first quarter of 2025. Although growth picked up in December 2024 from previous quarters to record a total economic output of GHȻ 54 billion, the real GDP declined in the subsequent quarter.
According to the 2026 Budget and the Ghana Statistical Service (GSS), Ghana’s growth rate for the first quarter of 2025 was 6.3 percent year-on-year compared to 4.5 percent in the first quarter of 2024. Similarly, the second quarter of 2025 grew by 6.3 percent year-on-year compared to 5.7 percent in 2024. GDP expanded in the first half of 2025 by 6.3 percent compared to the 5.2 percent growth recorded in the same period in 2024. This indicates a steady growth in 2025, driven mainly by the agriculture and service sectors of the economy.
“Ghana’s real sector continued to strengthen in the first half of 2025, marking a firm recovery built on resilience and confidence.”
Dr Cassiel Ato Forson – Budget Statement in Parliament
With the various initiatives in the agriculture and service sectors by the government, the prospects of growth in 2026 look promising. Although the industry sector lags, again, government initiatives to boost the real sector are likely to propel the industry sector upward. If the government does not default and remains consistent, further growth is assured.
Sectoral Performance: Agriculture
The computation of the national GDP is rooted in the contribution of the three main sectors of the economy: agriculture, industry, and the service sectors. Under each of these sectors is a list of sub-sectors that also contribute to the headline sectors.
According to the Bank of Ghana data, the agriculture sector, adjusted for inflation, grew by 6.6 percent year-on-year in the first quarter of 2025. The sector also grew by 5.2 percent in the second quarter compared to the 3.5 percent growth in the same period in 2024.
The agriculture sector in the first half of 2025 grew by 6.0 percent compared to 2.9 percent in the same period a year earlier. This the Minister of Finance, Dr Cassiel Ato Forson, described as “a robust performance.” According to the 2026 Budget, “growth was broad-based, with crops expanding by 6.2 percent, livestock by 5.8 percent, and fishing by 7.7 percent.”
In the second and third quarters of 2024, the growth of the sector was 3.5 percent and 2.5 percent, respectively. This questions the impact of the various flagship programs of the period, such as the planting for food and jobs and the one village one dam, meant to boost output.
Among the several improvements in the agriculture sector, the most notable is the rebound in cocoa production. Cocoa production grew in the first quarter of 2025 by 2.8 percent, as against the sharp contraction of 21.4 percent in the same period in 2024. This means that cocoa, of which Ghana is the second largest producer in the world after Côte d’Ivoire, experienced a shortfall in production.
Since Ghana’s economy is not diversified, this shortfall weakened the country’s position and deeply affected the economy in terms of growth slowdown, plummeting export revenue and fiscal strain, global shortfall and price surge, and affected COCOBOD’s contracts, operations, and the livelihood of cocoa farmers. This recovery, according to Dr Forson, “was made possible by improved pest control, timely fertilizer distribution, and sustained investment in farmer support programs.”
Sectoral Performance: Service
The service sector recorded a 7.8 percent year-on-year growth in the first quarter of 2025. The sector also recorded 9.9 percent growth in the second quarter compared to the 2.0 percent growth recorded in the same period in 2024.
The services sector, which remains the primary engine of growth, expanded by 8.8 percent in the first half of 2025, compared to 3.2 percent in the same period of 2024. The Information and Communication sub-sector grew by 17.2 percent from 16.5 percent in 2024; the financial and insurance sector also grew by 9.5 percent; transport and storage expanded by 6.7 percent; and the education sub-sector posted strong growth of 14.9 percent. These were fueled by investment and improved management, Dr Forson remarked in the 2026 Budget.
“These trends confirm that Ghana’s recovery is increasingly being driven by innovation, technology, and services. The modern economy is taking shape, one built on productivity, knowledge, and opportunity rather than short-term consumption.”
Dr Cassiel Ato Forson – Budget Statement in Parliament
Sectoral Performance: Industry
The first quarter of 2025 observed a growth of 4.1 percent year-on-year growth while the second quarter grew by 2.3 percent compared to the impressive 12.2 percent growth in the same period in 2024.
The manufacturing sub-sector expanded by 6.3 percent, compared to a contraction of 0.5 percent in 2024. This reflects an improved energy reliability and domestic demand, according to Dr Forson in the 2026 Budget. The construction sub-sector also grew by 4.0 percent on the back of renewed infrastructure projects and private housing developments.
However, growth in the industry sector for the first half of 2025 was 3.2 percent. According to the Minister, this resulted from lower oil output.
Oil’s Influence on GDP Growth
According to the Bank of Ghana data, the real overall GDP growth year-on-year (including oil) was 6.3 percent in the first quarter of 2025. In the second quarter, the growth rate remained at 6.3 percent compared to the 5.7 percent growth in 2024, same period.
On the other hand, the overall GDP growth year-on-year (excluding oil) was 7.7 percent in the first quarter of 2025. The growth increased to 7.8 percent in the second quarter, matching the same growth in 2024, same period.
This implies that the oil component of the GDP negatively affected the national GDP recorded. This might be the reason why the industry sector, which includes an oil component, performed moderately. Perhaps, an industry sector GDP growth (excluding oil) might record a higher growth.
Ghana’s economic growth outlook remains promising. Improvement in the underperforming industry sector could further boost growth. The government must improve manufacturing activities, make consistent and effective policies in the sector, build new and expand existing industries, and improve the oil sub-sector.
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