Home Business Ghana’s Q1 GDP Growth Exceeds Projections at 5.3%, Signals Economic Recovery

Ghana’s Q1 GDP Growth Exceeds Projections at 5.3%, Signals Economic Recovery

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Gdp
Gdp

Ghana’s economy expanded by a stronger-than-expected 5.3% in the first quarter of 2025, surpassing both government and IMF forecasts, according to the latest data from the Ghana Statistical Service.

Finance analyst Nelson Kuagbedzi of Merban Capital attributes this performance to effective policy reforms, citing stabilized inflation (18.4%), cedi appreciation, and improved reserves as key drivers.

The growth was led by agriculture (6.6%) and services (5.9%), with ICT, finance, and transport as standout subsectors. However, industrial growth slowed to 3.4%, weighed down by contractions in oil and gas. The Q1 figure notably exceeds the IMF’s 2025 projection (4.4%) and government target (4.0%), suggesting accelerating recovery momentum.

While acknowledging persistent cost-of-living pressures, analysts highlight the potential for sustained growth to generate employment and improve living standards if current trends continue. The performance reinforces the impact of fiscal consolidation measures under Ghana’s IMF program, though observers caution that maintaining progress will require addressing sectoral imbalances, particularly in industry.

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