Economy grows 4.4% in second quarter of 2025
By: Praisebell Rosemond Larbi
Economic activity in Ghana continued on a steady growth path in the second quarter of 2025, according to the Bank of Ghana (BoG), as both business and consumer confidence improved amid easing inflation and a stronger macroeconomic outlook.
Data from the central bank’s high-frequency indicators show that the Composite Index of Economic Activity (CIEA) recorded a 4.4 percent year-on-year growth in May 2025, an improvement over the 3.4 percent recorded during the same period in 2024.
The BoG attributed the growth to strong performance across key sectors of the economy, including international trade, construction, consumption, and tourism.
“The upturn in economic activity was broad-based, supported by increased import and export flows, higher construction activity, greater consumer spending, and a rebound in tourist arrivals,” the Bank said in its July 2025 Monetary Policy Report.
Further bolstering the outlook, the Bank’s most recent surveys showed heightened optimism among both consumers and businesses. The improvement in sentiment is being linked to declining inflation and improving economic fundamentals.
“Confidence levels among economic agents have strengthened, underpinned by a general expectation of continued economic recovery and macroeconomic stability,” the BoG noted.
In the first quarter of 2025, Ghana’s Gross Domestic Product (GDP) expanded by 5.3 percent year-on-year, compared to 4.9 percent in the same period of 2024. This performance was largely driven by growth in the agriculture and services sectors.
Excluding the oil sector, non-oil GDP grew even more robustly, at 6.8 percent in the first quarter of 2025, compared to 4.3 percent during the corresponding period in 2024. This indicates that economic activity outside the petroleum sector has gained considerable momentum.
Analysts say the latest data may bolster investor confidence and support the government’s fiscal and economic reform agenda under the ongoing IMF-backed program.
The BoG is expected to maintain a cautious but supportive monetary policy stance to consolidate the gains while ensuring inflation remains on a downward trajectory.
