Ghana’s Non-Oil Sector Powers Q3 Growth as Oil Output Slumps
By Praisebell Rosemond Larbi
Ghana’s economy remained resilient in the third quarter of 2025, with robust activity in the non-oil sectors offsetting one of the steepest contractions the oil and gas industry has seen in recent years. Fresh figures released by the Ghana Statistical Service show that real GDP expanded by 5.5% in Q3, lower than the 7.0% recorded a year earlier but still signalling firm momentum driven primarily by domestic, non-extractive industries.
The data highlights a widening gap between the two sides of the economy. While the overall growth rate moderated, the non-oil sector surged ahead, expanding by 6.8% and rising from GH¢45.6 billion to GH¢48.7 billion. This performance reflects the economic activity most Ghanaians experience daily, buoyant agricultural harvests, stronger ICT and digital services, a busy transport and logistics network, and steady improvements in education, trade, and other service-oriented activities. These areas have now become the backbone of Ghana’s growth trajectory.
Government Statistician, Dr. Alhassan Iddrisu, underscored this shift while presenting the quarterly results, noting the structural realignment taking place beneath the headline numbers. “What we are seeing is a steady strengthening of the non-oil economy. “The resilience in agriculture and services shows that domestic economic activity remains strong, even as the extractive sector faces significant challenges,” he said.
Those challenges were most pronounced in the oil and gas sector, where output contracted sharply by 8.2%. The slump dragged down the broader industrial sector and weighed on its overall performance. Industry, although accounting for more than 32% of the national economy, grew by just 0.8%, contributing a modest 4.7% to total GDP growth.
The divergence between oil and non-oil performance reinforces a long-term trend that has been gaining traction in recent years. Ghana’s once-dominant petroleum sector, previously a major driver of growth, revenue, and foreign exchange has become more volatile and less reliable. In contrast, agriculture expanded by 8.6% in the quarter, supported by improved harvests and growth in livestock and fisheries, while the services sector recorded a solid 7.6% rise, maintaining its position as the largest contributor to national output.
Price indicators also offered some relief for households and businesses. A lower GDP deflator pointed to easing inflationary pressures, suggesting a more stable environment for production, consumption, and investment across non-oil industries.
With the services sector contributing an estimated 59.5% of total growth in Q3 and agriculture adding 30%, the evidence suggests that Ghana’s economic strength now rests on sectors that create broader employment opportunities and support more inclusive development. The third-quarter results reinforce the picture of an economy that is gradually shifting away from reliance on extractives and building a stronger base in domestic, labour-intensive sectors.
