Economy grows 6.3% in 2nd quarter - Driven by services, industry

The economy expanded by 6.3 per cent in the second quarter of the year (April to June) compared to the same period last year, a trajectory that points to a gradual recovery of the economy.

According to provisional real Gross Domestic Product (GDP) figures released by the Ghana Statistical Service (GSS) in Accra yesterday, the value of real GDP increased to GH¢47.4 billion in the second quarter of the year, up from the GH¢44.6 billion in the same period last year.

Without accounting for oil production, real GDP was valued at GH¢45.7 billion, up from GH¢42.4 billion recorded for the same period in 2024.

Nominal GDP – the total value of goods and services produced in the country at current market prices without the effect of inflation – reached GH¢321 billion, up from GH¢258.9 billion recorded in 2024.

The non-oil nominal GDP was valued at GH¢313 billion in the quarter, a rise from GH¢244.7 billion in the second quarter of last year.

The provisional quarterly real GDP growth rate without oil and gas (Non-oil GDP) for the period was 7.8 per cent, which compares to a growth rate of 5.7 per cent in the same quarter last year.

The GSS data pointed out that Information and Communication; Education; Manufacturing, and Financial and Insurance activities, drove the growth in the value of goods and services produced within the country, otherwise known as GDP.

However, Mining and Quarrying, and Real Estate were the main sub-sectors that contracted. 

Services

The services sector emerged as the growth powerhouse, expanding by 9.9 per cent year-on-year and contributing 41.9 per cent to GDP at basic prices.

Within the sector, Information and Communication led with 21.3 per cent growth, reflecting the country’s burgeoning digital economy.

Education sub-sector followed closely with a 16.6 per cent expansion, driven by increased investments in human capital development.

Health and Social Work sub-sector grew by 14.6 per cent, while Financial and Insurance Activities, and Other Personal Services recorded growth rates of 9.7 per cent and 11.3 per cent, respectively, highlighting the sector’s pivotal role in driving economic progress.

In spite of the overall positive performance, the Real Estate sub-sector contracted, marking it as the weakest performer within the Services sector.

Industry, agriculture sectors

Industry sector, which contributed 33.2 per cent to GDP, posted a more modest growth of 2.3 per cent, with the Manufacturing sub-sector emerging as a key performer within this sector.

However, the Mining and Quarrying sub-sector contracted by 1.8 per cent year-on-year, with oil and gas production shrinking significantly by 22.5 per cent, signaling ongoing challenges in the extractive industries.

Agriculture, accounting for 24.8 per cent of the provisional GDP, grew by 5.2 per cent, with the Livestock sub-sector leading at 5.9 per cent growth, while Fishing recorded the lowest expansion at 0.9 per cent.

The growth in the agriculture sector helped to offset declines in oil production, contributing to a strong non-oil GDP growth of 7.8 per cent, up from 5.7 per cent in the second quarter of last year, demonstrating the economy’s increasing need for diversification.

When occurrences that happen seasonally are removed from the computation to allow for easier comparison, the provisional real GDP still increased by 1.4 per cent in the second quarter of this year compared to the same quarter last year, up from the first quarter’s 1.6 per cent, reflecting a slight moderation but indicating sustained economic momentum. 
 

Uneven recovery

The GSS said the contraction, alongside challenges in Mining and Quarrying, highlighted uneven recovery across sub-sectors.

On the demand side, household consumption surged by 12.2 per cent, gross capital formation rose by 17.1 per cent, and net exports skyrocketed by 691.6 per cent, driven by strong gold and non-oil exports.

However, the government’s final consumption expenditure dipped slightly by 0.2 per cent, reflecting fiscal consolidation efforts under International Monetary Fund (IMF)-supported reforms.

The Government Statistician, Dr Alhassan Iddrisu, described the figures as evidence of a stabilising economy.

“This growth trajectory points to a gradual recovery, underpinned by strong services and resilient agriculture,” he said in a release.