Ghana’s economy recorded a 6.4 percent year-on-year growth in the first quarter of 2026, according to provisional data released by the Ghana Statistical Service (GSS), signaling continued expansion supported by strong performances in services and industry.
The latest figure marks a modest improvement over the 6.2 percent growth rate recorded in the same period of 2025, highlighting sustained economic momentum at the start of the year.
Government Statistician, Dr. Alhassan Iddrisu, presenting the data, noted that the growth reflected increased production across the economy, alongside easing price pressures.
In nominal terms, Ghana’s GDP rose from GH¢378 billion in Q1 2025 to GH¢420.4 billion in Q1 2026, representing an 11.2 percent increase.
Real GDP, which strips out inflation, grew from GH¢53.9 billion to GH¢57.4 billion.
A notable development was the sharp drop in the GDP deflator, a broad measure of inflation, which declined from 23.9 percent to 4.1 percent over the same period.
“This suggests that inflationary pressures affecting production have considerably reduced compared to a year earlier,” Dr. Iddrisu said.
Quarter-on-quarter growth, adjusted for seasonal factors, stood at 1.6 percent, indicating the economy maintained positive momentum into 2026.
The non-oil sector continued to demonstrate resilience, expanding by 6.3 percent, only slightly below the 8 percent growth recorded a year earlier.
This underscores what the GSS described as broad-based economic expansion beyond the oil sector, a key indicator of structural stability.
The services sector remained the largest contributor to economic activity, accounting for 45.7 percent of GDP and 48.3 percent of total growth, after expanding by 7.1 percent.
The standout performer was Information and Communication, which grew by an impressive 25.2 percent, contributing over a quarter of total GDP growth (26.9 percent).
Other strong contributors within services included: transport and storage: 13.0 percent growth, trade and repair services: 9.0 percent growth and financial and insurance services: 4.4 percent growth.
However, the sector was not without recorded weaknesses, as accommodation and food services contracted sharply by 13.6 percent, real estate declined by 3.2 percent and health and social work fell by 1.0 percent.
Despite these declines, services remained the primary engine of economic expansion, driven largely by digital transformation and increased commercial activity.
The industrial sector expanded by 6.9 percent, significantly above its long-term average of 3.9 percent, and contributed 34.1 percent of total GDP growth.
Growth was largely driven by mining and quarrying: 10.7 percent growth, manufacturing: 6.2 percent and electricity; 6.2 percent.
Mining alone contributed 20.1 percent of overall GDP growth, making it the second-largest driver after ICT.
Oil and gas production also rebounded, recording 7 percent growth after contracting heavily the previous year.
The only major drag within industry was water and sewage, which contracted by 3.7 percent, highlighting ongoing infrastructure challenges.
The agriculture sector grew by 4.0 percent, contributing 13.5 percent of GDP growth and accounting for 21.4 percent of the economy.
Key sub-sector performances included: crops: 4.7 percent growth, livestock: 5.7 percent, forestry and logging: 9.0 percent (strong rebound) and cocoa: 3.8 percent.
However, fishing recorded a sharp contraction of 18.5 percent, the steepest decline across all sectors.
While agriculture remains vital for livelihoods and food security, its growth was slightly below its long-term average of 4.7 percent, suggesting room for improvement.
The GSS identified five key sectors driving the bulk of growth in Q1 2026: Information & Communication – 26.9 percent of total growth, mining & Quarrying – 20.1 percent, trade & repairs – 14.8 percent, crops – 12.7 percent,and transport & storage – 12.1 percent
Together, these sectors accounted for nearly 87% of overall economic expansion.
From the expenditure side, economic growth was supported by rising domestic demand.
- Domestic demand grew by 10.4 percent, more than double the 5 percent recorded in Q1 2025
- Household consumption increased by 7.5 percent.
- Overall consumption rose by 6.3 percent.
Stronger household spending was attributed to improving economic conditions and easing inflation.
Investment also emerged as a major driver of growth, indicating renewed confidence in the economy.
Despite the positive outlook, several sectors remain under strain, including:
- Fishing
- Hospitality
- Water and sanitation
- Real estate
- Health services
The GSS emphasized the need for targeted interventions to ensure more balanced and inclusive growth. The Q1 2026 GDP figures point to an economy that is growing steadily with improving macroeconomic stability, supported by strong performances in services and industry. However, sustaining this momentum will require addressing sectoral imbalances and strengthening underperforming areas.
As Dr. Iddrisu noted, the data provides critical insights for policymakers, businesses, and investors seeking to navigate Ghana’s evolving economic landscape.
Source: businesspostonline
