Ghana’s economy expands by 5.3% in Q1 2025, driven by Agriculture, Services, and Manufacturing

Ghana’s economy posted a solid performance in the first quarter of 2025, growing by 5.3% year-on-year, up from 4.9% in the same period in 2024, according to provisional data released by the Ghana Statistical Service and presented by Government Statistician, Dr. Alhassan Iddrisu.

The data, part of the 2025 First Quarter Gross Domestic Product (GDP) estimates, shows strong momentum in non-oil sectors, with agriculture, services, and manufacturing emerging as key growth drivers despite global headwinds.

Nominal GDP rose sharply to GH¢375.2 billion from GH¢290.7 billion recorded in Q1 2024. Excluding oil and gas, the non-oil nominal GDP reached GH¢364.3 billion, a significant increase from GH¢278.3 billion last year.

Real GDP for Q1 2025 stood at GH¢53.5 billion, up from GH¢50.8 billion in Q1 2024, while non-oil real GDP grew to GH¢51.4 billion, representing an impressive 6.8% growth—well above the 4.3% recorded in the same period in 2024.

“This is a sign of strong and broad-based recovery,” Dr. Iddrisu noted during his presentation, adding that “non-oil growth reflects a healthier balance in our economy, with less reliance on extractives.”

The agriculture sector recorded its highest quarterly growth in years, expanding by 6.6%, a sharp rebound from the 2.4% growth recorded in Q1 2024.

The fishing sub-sector saw the most dramatic improvement, surging by 16.4%, buoyed by increased catch volumes and improved logistics.

“This is positive news for farmers and food security,” Dr. Iddrisu stated, pointing to a likely moderation in food inflation in the coming quarters.

While overall industrial growth slowed to 3.4%—down from 6.7% in Q1 2024—the manufacturing sub-sector remained resilient, growing by 6.6%.

The oil and gas sector, however, contracted significantly by 22.1%, pulling down the performance of the broader industry sector.

Mining and quarrying posted modest growth of 1.4%, underscoring the need for increased diversification and value addition within the industrial sector.

Services continued to be the largest contributor to GDP, accounting for 46.8% of total economic output.

The sector expanded by 5.9% in Q1 2025, led by Information and Communication (13.1%), Finance and Insurance (9.3%), Transport and Storage (8.6%), and Trade (7.1%).

Dr. Iddrisu emphasized the potential of the digital economy, noting, “ICT remains the fastest-growing segment. This offers fresh opportunities for youth employment and 24-hour service operations.”

According to the data, the five fastest-growing sub-sectors in Q1 2025 were:

1. Fishing – 16.4%

2. Information & Communication – 13.1%

3. Finance & Insurance – 9.3%

4. Transport & Storage – 8.6%

5. Health & Social Work – 7.3%

Conversely, the worst-performing sectors were:

1. Public Administration, Defence & Social Security – (-4.2%)

2. Education – (-4.0%)

3. Water Supply, Sewerage & Waste Management – (-3.7%)

4. Forestry & Logging – (-2.5%)

5. Real Estate – (-0.7%)

Policy Recommendations: Households, Businesses, and Government

The Ghana Statistical Service made strategic recommendations for key stakeholders:

Households are encouraged to explore employment in agriculture and services, especially under the 24-Hour Economy initiative, as well as leverage lower food prices and inflation due to improved crop and fishing yields.

Businesses are advised to realign operations to benefit from expanding sectors such as transport, trade, and ICT. SMEs in manufacturing should take advantage of road, irrigation, and storage infrastructure to expand under the AfCFTA and the government’s Big Push Programme.

Government is urged to scale up Gold Board activities to stabilize mining earnings and cushion the decline in the oil and gas sector.

Increased investment in infrastructure—particularly in digital, transport, and power—is also recommended to boost competitiveness and stimulate broader industrial growth.

The 5.3% growth in Q1 2025 signals renewed economic momentum and resilience amid global uncertainty. With the non-oil sectors firing on all cylinders and agriculture staging a comeback, Ghana’s economy appears to be on a stronger footing going forward.

Story by: Joshua Kwabena Smith