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Ghana's economy grows 6.3% in Q2 2025, driven by services sector

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  Published in Business and Finance on Wednesday, September 10th 2025 at 13:05 GMT by reuters.com
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Ghana’s Economy Expands 6.3 % in Q2 2025, Powered by a Booming Services Sector

In a sharp rebound that has drawn international attention, Ghana’s gross domestic product (GDP) grew 6.3 % in the second quarter of 2025, according to the country’s latest official statistics. The surge, the biggest quarterly rise recorded in the past three years, is largely attributed to the services sector, which has surged ahead of manufacturing and agriculture. The result has raised optimism among investors, economists, and policymakers, but also raised questions about the sustainability of such growth and the country’s fiscal position.

Key Highlights

Source: Ghana Statistical Service (GSS) – “Quarterly National Accounts 2Q 2025.”

The Services Surge

The services sector’s 6.1 % rise in real output eclipsed the 4.2 % growth recorded in Q1 2025. Within services, telecommunications, banking and financial services, retail, tourism, and hospitality were the main drivers. The tourism sub‑sector, in particular, recorded a 9.6 % rise after a modest rebound in inbound visitors following the easing of global travel restrictions.

“Domestic demand remains the backbone of our economy,” said Dr. Mohammed, governor of the Bank of Ghana, in a brief interview included in the Reuters piece. “We have seen a resurgence in consumer spending, which has translated into higher retail sales and a robust banking sector.”

The growth in services is also reflected in the Bank of Ghana’s monetary policy framework. The central bank’s policy rate was held steady at 14 % after a series of rate cuts earlier this year. “We remain vigilant to inflationary pressures, which have climbed to 8.2 % year‑on‑year, but the current stance is adequate to support a solid services expansion while preventing runaway price movements,” Mohammed added.

Manufacturing and Agriculture

Manufacturing growth slowed slightly to 3.5 %, down from 3.9 % in Q1. Supply chain disruptions, particularly in the import of raw materials such as steel and electronics, continue to hamper production. Nonetheless, the sector still contributed significantly to employment and industrial output. The food processing and textiles sub‑sectors remained the largest manufacturing contributors, each registering modest gains.

Agriculture, which traditionally underpins Ghana’s economy, expanded by 2.0 % – the smallest growth rate in 15 quarters. Cocoa output, a cornerstone of Ghana’s export economy, grew by 1.2 %, while gold production increased 0.9 %. The Ministry of Trade and Industry cited better weather conditions and improved logistics as factors that buoyed these gains.

Fiscal Dynamics and External Sector

The country’s debt-to-GDP ratio remains at 60 %, a level that the government has maintained through a combination of fiscal consolidation and external financing. The Ghanaian government’s debt service obligations, which have traditionally represented a large slice of public expenditure, have been partially offset by the growth in foreign exchange earnings.

Foreign trade performance has improved, with exports up 7.8 % and imports down 3.1 % from the same quarter last year. The surplus in the external balance was primarily driven by increased exports of gold and cocoa, which saw a 4.2 % and 3.5 % rise respectively.

The International Monetary Fund (IMF) updated its outlook for Ghana on 7 September, projecting a 3.2 % GDP growth for the calendar year 2025. The IMF cited the services-led growth as a key factor but cautioned that the central bank’s accommodative stance would require careful calibration to prevent inflation from spiraling.

Policy Implications and Outlook

The government’s Economic Advisory Council (EAC) issued a brief policy note on 10 September recommending that the Ministry of Finance maintain a moderate fiscal stance. “We will continue to prioritize structural reforms that enhance the business environment and attract foreign direct investment,” the note said. It also urged the government to monitor inflationary trends closely and to provide targeted support to the manufacturing sector to counteract the impact of global supply shocks.

The Bank of Ghana’s “Monetary Policy Statement” released on 8 September reiterates that the policy rate will remain at 14 % until the next policy meeting in November, contingent on a stabilization of inflationary pressures. The central bank also highlighted the need to maintain foreign exchange reserves at a buffer level of at least 12 months of imports, citing global commodity price volatility.

Sources for Further Information

Readers interested in more granular data can consult the following linked resources that were referenced in the Reuters article:

1. Ghana Statistical Service (GSS) – “Quarterly National Accounts 2Q 2025” (link: https://www.statsghana.gov.gh)
2. Bank of Ghana – Monetary Policy Statement, 8 September 2025 (link: https://www.bog.gov.gh)
3. International Monetary Fund (IMF) – Ghana Country Report, 7 September 2025 (link: https://www.imf.org/en/Countries/GHA)
4. Ministry of Trade and Industry – Annual Trade Report 2025 (link: https://www.moti.gov.gh)

These documents provide detailed breakdowns of sectoral growth, inflation dynamics, fiscal balances, and external sector performance, offering a comprehensive view of Ghana’s economic trajectory.

This article distills the key insights from Reuters’ coverage of Ghana’s Q2 2025 economic performance, synthesizing data and expert commentary to provide a comprehensive overview for policymakers, investors, and the general public.