The economy has shown robust growth in the first quarter of 2025, with provisional real Gross Domestic Product (GDP) expanding by 5.3%, up from 4.9% in the same period last year, according to the latest Statistical Newsletter released by the Ghana Statistical Service.

Announcing this to the media yesterday at the GSS head office in Accra government statistician Alhassan Iddrisu noted that this marks a significant improvement in economic performance, fueled by strong contributions from the Agriculture and Services sectors.

“The provisional data, covering January to March 2025, highlights a year-on-year real GDP growth rate of 5.3%, with non-oil GDP surging even higher at 6.8%, compared to 4.3% in Q1 2024. Seasonally adjusted, the economy grew by 1.4% quarter-on-quarter, a 0.5 percentage point increase from the 0.9% recorded in Q4 2024,” he stated

Key drivers of growth

The Agriculture sector led the charge with an impressive 6.6% year-on-year growth, driven by a remarkable 16.4% expansion in the Fishing sub-sector. Crops, including cocoa, also contributed significantly, growing by 6.7%. The Services sector, which remains the largest contributor to GDP at 46.8%, grew by 5.9%, with standout performances from Information and Communication (13.1%) and Financial and Insurance Activities (9.3%).

The Industry sector, accounting for 29.7% of GDP, grew by 3.4%, with manufacturing expanding by 6.6%, though Oil and Gas contracted sharply by 22.1% due to reduced production.

According to Dr Iddrisu with respect to agriculture, fishing and crops were the top performers, while forestry and logging contracted by 2.5%.

“In the service sector information and communication led with double-digit growth, but public administration, defense, and social security saw a 4.2% contraction while in industry; manufacturing and gold production in mining and quarrying offset the decline in oil and gas,” he stated.

Challenges amid growth

Despite the overall positive outlook, some sub-sectors faced contractions. Public Administration, education, and water supply, sewerage, waste management, and remediation activities recorded declines, signaling areas for policy attention.

Economic outlook

The strong performance in Q1 2025 reflects Ghana’s resilience amid global economic challenges. Analysts attribute the growth to increased agricultural productivity and a vibrant services sector. The next GDP release, scheduled for September 10, 2025, will provide further insights into the economy’s trajectory.

First Quarter Document Below

Story By: Kwame Lawerh