Economic Activity Posts Strong Outturn in October 2025 – Bank of Ghana
By Praisebell Rosemond Larbi
Ghana’s economic recovery gained renewed momentum in October 2025, with the Bank of Ghana reporting a significant surge in economic activity and improved sentiment among consumers and businesses. The Central Bank’s latest update shows that the Composite Index of Economic Activity (CIEA) recorded a strong year-on-year growth of 9.6 percent for October 2025, a substantial rise compared to the 2.9 percent growth posted during the same period in 2024.
This sharp improvement underscores the increasing pace of economic expansion driven by a combination of industrial, commercial, and financial sector indicators. According to the Monetary Policy Committee (MPC), the robust performance of the CIEA reflects “broad-based improvements across key sectors,” signalling a continued strengthening of Ghana’s post-stabilisation economic trajectory.
The MPC report attributes the impressive outturn to growth in industrial production, a rebound in international trade activities, expansion in private sector credit, and higher consumer spending, all of which fed into the index’s overall performance during the review period.
In particular, industrial activity showed a notable pickup as manufacturers ramped up production in response to rising domestic demand and improved raw material inflows. Likewise, international trade recorded stronger volumes as both exports and imports saw a rebound, supported by improved global commodity conditions and a more stable domestic currency environment.
The report further highlighted that credit conditions improved considerably, with commercial banks extending more credit to the private sector amid easing financing constraints. This, the Central Bank noted, has contributed to increased business operations, inventory rebuilding, and investment activity.
Beyond the headline indicators, the Bank of Ghana also reported a significant rise in consumer and business sentiment. Findings from its October 2025 confidence surveys pointed to heightened optimism regarding both current economic conditions and expectations for the near term. Consumer confidence rose sharply as households reported better income stability, improved purchasing power, and greater optimism about future job prospects.
Business confidence also strengthened on the back of improved sales, a more predictable macroeconomic environment, and positive expectations regarding input supply and export demand. According to the MPC, these sentiment readings suggest that economic agents have growing trust in the trajectory of the recovery.
Supporting these developments is the notable improvement in Ghana’s Purchasing Managers’ Index (PMI), which climbed in October due to an increase in new orders. The rise in new orders, particularly from the services and manufacturing sectors, reflects the strengthening economic pulse and the broadening of demand-side pressures. This, the MPC emphasized, is an encouraging signal of private sector resilience and expanding productive activity.
“Taken together, these gains indicate that the negative output gap is closing,” the Committee noted, suggesting that the economy is gradually returning to its potential level of output after several years of subdued performance following domestic and external shocks.
While acknowledging that risks remain, the Central Bank stressed that maintaining the current momentum will be critical for securing a strong growth outcome for 2025. The MPC concluded that if the observed pace of expansion continues through the fourth quarter, Ghana’s Gross Domestic Product (GDP) growth for the year is expected to remain firm, supported by sustained improvements in consumption, investment, and industrial performance.
The October outturn, analysts suggest, positions the economy for a more stable growth path heading into 2026, provided that policy consistency, fiscal discipline, and private-sector credit expansion continue unhindered.
