Keypoints:
- Economy rises 6.3pc in Q2
- Services expand by 9.9pc
- Inflation eases to four-year low
GHANA’S economy expanded by 6.3 percent year-on-year in the second quarter of 2025, up from a revised 5.7 percent in the same period last year, the Ghana Statistical Service announced on Wednesday. The growth was powered by a surge in the services sector.
Government statistician Alhassan Iddrisu told reporters in Accra that services, which include finance, insurance, trade and education, jumped 9.9 percent compared with just 2 percent a year earlier.
‘In fact, it contributed the most growth in the quarter. It contributed four percentage points to the 6.3 percent growth we recorded in the quarter,’ Iddrisu said.
Services sector drives rebound
The robust expansion in services underscored Ghana’s recovery momentum and signalled stronger domestic demand. Financial activity, trading volumes and education services all showed notable gains, according to the statistics agency.
Non-oil GDP also recorded a 7.8 percent rise, adding to the overall momentum. Agriculture delivered moderate growth, while the oil sector contracted, reflecting weaker global demand.
Crisis recovery taking shape
The gold-, cocoa- and oil-producing nation is gradually recovering from its most severe economic crisis in decades. Ghana’s recent struggles with high debt, a weakening cedi and surging inflation had threatened growth prospects.
Reforms and debt restructuring, combined with stronger performance in non-oil sectors, have boosted investor confidence. Authorities say a shift toward services and agriculture diversification is helping cushion the economy against commodity price swings.
Inflation at four-year low
Ghana’s annual inflation rate eased to 11.5 percent in August, the lowest reading since October 2021. The finance ministry has set a year-end inflation target of 11.9 percent.
The fall in price pressures has offered relief to households after a prolonged period of soaring living costs. Analysts note that the trend could give policymakers room to support growth while keeping fiscal measures on track.
Ghana’s performance in the months ahead will be closely monitored, with both investors and policymakers weighing the balance between sustaining growth and maintaining fiscal discipline.
