Ghana’s Economy Surges 6.3% in the Second Quarter of 2025

Ghana’s economy surged 6.3% in Q2 2025 (image source)

ACCRA – Ghana’s economy posted impressive growth in the second quarter of 2025, expanding by 6.3 percent year-on-year, compared to 5.7 percent in the same quarter of 2024, according to provisional figures from the Ghana Statistical Service (GSS). The data underscores the resilience of West Africa’s second-largest economy, with the services sector emerging as the main growth driver, fuelled by double-digit expansion in information and communications technology (ICT).

The services cluster, which includes finance, insurance, trade, education, and ICT, grew 9.9 percent, contributing four percentage points to overall GDP growth. Within this, ICT surged by 21.3 percent, propelled by mobile banking adoption, rapid expansion of e-commerce platforms, and growing demand for digital learning tools across both urban and peri-urban areas. Services now account for 41.9 percent of GDP at basic prices, highlighting Ghana’s shift away from heavy oil dependency.

Non-oil GDP rose 7.8 percent, reflecting strong performances in agriculture and services. Agriculture, which makes up 24.8 percent of GDP, expanded by 5.2 percent, supported by higher livestock and crop output. The industrial sector, comprising 33.2 percent of GDP, recorded modest growth of 2.3 percent. Electricity generation rose by 6.7 percent, but mining and quarrying contracted 1.8 percent due to weaker oil-field production and depressed global mineral prices.

Household consumption provided a major boost, jumping 12.2 percent, supported by rising incomes, stronger rural purchasing power, and a robust formal-sector labour market. Gross capital formation surged 17.1 percent, reflecting heavy public investment in infrastructure, including roads, ports, and digital innovation hubs.

On the external front, net exports spiked an extraordinary 691.6 percent year-on-year, supported by higher cocoa, gold, and cashew shipments. However, imports of machinery and industrial goods kept the trade bill elevated.

Inflation fell to 11.5 percent in August 2025—its lowest level in nearly four years—helping protect household incomes. The Bank of Ghana maintained its benchmark policy rate at 25 percent in July to anchor expectations and safeguard macroeconomic stability. Economists argue that Ghana’s combination of strong growth and easing inflation will bolster investor confidence, particularly as the government continues to implement IMF-backed fiscal reforms to reduce deficits and stabilise the cedi. Still, external debt remains a concern at 67 percent of GDP, though it has eased from the 2023 peak of 75 percent.

The Finance Ministry projects 5.8 percent GDP growth for 2025, underpinned by major projects such as the Tema Port expansion and the rollout of digital hubs in Kumasi and Tamale.

However, risks remain. Commodity price volatility could undermine export earnings, while potential El Niño-induced droughts threaten agricultural production. Additionally, Ghana’s ability to enhance domestic revenue through VAT reforms and improved tax collection will be crucial to sustaining fiscal stability.

Despite these challenges, Ghana’s Q2 2025 performance reflects a resilient, services-led economy that is increasingly less reliant on oil. The shift toward ICT and diversified exports signals a more balanced growth trajectory, positioning the country as a competitive player in West Africa’s economic landscape.