Economy expanded by 4.2% in quarter one 2025 – Databank Research

Ghana's real Gross Domestic Product (GDP) grew by 4.2% in the first quarter of 2025, according to Databank Research.

This growth occurred despite typical fiscal delays. Public spending remained restrained, and private sector activity was subdued.

The services sector is expected to expand by 6.2%. This growth is driven by strong gains in information and communication. Mobile money transactions surged by 64.7%, reaching GH¢649.2 billion in the first two months.

Agricultural growth is projected to rise to 6.5%. Improved crop and livestock supply supports this increase. Cocoa arrivals reached 500,000 metric tons as of January 2025, close to last year's target of 650,000 metric tons.

Industrial growth may decelerate from 0.2% in Q4 of 2024 to 1.9%. This slowdown is due to construction cutbacks and lower oil revenues. Any boost from gold output is likely delayed until Q2 of 2025.

In 2024, Ghana's economy showed resilience with a real GDP growth rate of 5.7%. This exceeded the target of 3.1% and was an increase from 3.2% in 2023, despite a Q4 slowdown of -3.6%.

The slowdown was caused by reduced sectoral activity ahead of elections.

Growth was mainly driven by the industrial sector, which expanded by an average of 7.1%. Strong gold exports amid global uncertainty supported this expansion.

Election-year spending boosted construction, which grew by 9.7%. This marked a sharp recovery from an