While the broader economy shows signs of resilience, the oil and gas sub-sector, once hailed as a pillar of growth, has stumbled sharply, raising fresh concerns about the country’s dependence on extractive revenues.
According to the Ghana Statistical Service’s latest Q1 2025 GDP estimates, oil and gas contracted by 22.1 percent year-on-year, making it the steepest decline recorded across the industrial sector.
This downturn, attributed largely to a reduction in crude oil production, has weakened what could have been a stronger industrial rebound. The sector also shrank 5.6 percent quarter-on-quarter (seasonally adjusted), and its impact on industry-wide performance was significant, dragging overall growth by -1.15 percentage points.
Even so, the broader mining and quarrying sector managed to stay above water, growing by 1.4 percent during the quarter. This was thanks largely to gains in gold production, which helped offset the oil slump. In total, the mining and quarrying group contributed GHS 43.9 billion in nominal terms and accounted for 41.9 percent of industry’s GDP share.
Elsewhere in the industrial sector, manufacturing emerged as the standout performer, recording 6.6 percent real GDP growth year-on-year and 1.9 percent quarter-on-quarter. It contributed a robust GHS 41.7 billion to GDP at current prices, just under 40 percent of total industry output, and was the largest single contributor to industry-wide growth, adding 0.81 percentage points.
Performance in the other sub-sectors was mixed. Electricity grew by 2.8 percent, contributing 0.03 points, while construction recorded a 1.5 percent increase and added 0.10 points. However, water supply and sewerage saw a modest decline, contracting by 3.7 percent year-on-year and 0.7 percent quarter-on-quarter, shaving 0.01 points off the industry’s growth.
Altogether, Ghana’s industry sector grew by 3.4 percent in Q1 2025, with a real GDP contribution of GHS 17.0 billion. While manufacturing and gold provided a cushion, the sharp contraction in oil and gas highlights deeper structural vulnerabilities. ilience will come from.
