Services sector drives Ghana’s 6.3% economy growth in Q2

By Praisebell Rosemond Larbi

Ghana’s economy recorded a 6.3 per cent year-on-year growth in the second quarter of 2025, up from a revised 5.7 per cent in the same period last year, according to the latest figures released by the Ghana Statistical Service (GSS).

The performance, which exceeded analysts’ expectations, was driven primarily by a strong rebound in the services sector, highlighting its growing role as the engine of Ghana’s post-crisis recovery.

Services sector drives growth

Data showed that services, covering activities such as finance, insurance, trade, education and information technology, expanded by 9.9 per cent, a sharp rise from just 2 percent in the second quarter of 2024.

The surge reflects renewed investor and consumer confidence in key segments of the economy, particularly as financial services and education continue to attract higher demand.

Non-oil economy strengthens

Beyond services, Ghana’s non-oil GDP posted a strong 7.8 per cent expansion, reflecting broad-based gains in agriculture, manufacturing and construction.

This performance helped offset a contraction in oil and gas production, which continues to face operational and investment challenges.

Government Statistician Alhassan Iddrisu, presenting the figures in Accra, said the second-quarter growth demonstrates steady economic strengthening following the country’s deepest crisis in decades.

“Our data show that non-oil activities are carrying the growth momentum, and this is critical for ensuring that Ghana’s recovery is not overly dependent on petroleum revenues,” Dr Iddrisu stated.

Inflation easing

The growth figures come alongside continued progress on the inflation front. Headline inflation dropped to 11.5 per cent in August 2025, its lowest level since October 2021.

This represents a significant decline from the double-digit highs of 2022–2023 and beats the Finance Ministry’s 11.9 per cent year-end target.

Economists say the easing inflationary pressures, combined with stronger GDP growth, could reinforce policy credibility and help reduce borrowing costs for businesses and government alike.

Boost for investor confidence

The stronger-than-expected economic data are expected to bolster investor sentiment as Ghana advances with IMF-supported reforms aimed at restoring macroeconomic stability and ensuring debt sustainability.

Market analysts suggest the latest performance could attract renewed foreign investment flows, particularly into the services and manufacturing sectors, which have shown resilience despite a challenging global environment.

“Ghana’s growth trajectory in the first half of 2025 sends a positive signal to investors. If the momentum is sustained, the country is on course to exceed its full-year growth target,” one Accra-based economist observed.