Ghana’s economy is finally turning the corner following the robust economic expansion recorded in the first quarter of 2025, this is the view of finance analyst, Nelson Kuagbedzi.
The Head of Finance at Merban Capital says the 5.3% real GDP growth recorded in the first quarter of 2025 is a strong indication that the country’s economy is responding positively to recent policy gains and macroeconomic reforms.
Speaking in reaction to the latest Gross Domestic Product (GDP) figures released by the Ghana Statistical Service, Kuagbedzi maintained that the strong economic growth is as a result of a convergence of positive indicators that suggest the economy is on a recovery path.
The latest GDP figures attribute this solid performance to a strong showing in the Agriculture sector, which grew by 6.6%, mainly driven by the crops sub-sector.
The Agriculture sector was closely followed by the Services sector, recording an expansion of 5.9%. The sector’s growth was mainly driven by subsectors such as the Information and Communication Technology (ICT), Finance and Insurance, Transport and Storage, as well as Health and Social Work. However, not all sectors moved in the same direction.
Unfortunately, one critical sector, industry, slowed down considerably in the same period, growing by just 3.4%, largely due to reduced activity in the oil and gas space.
Amid the overall growth, the finance analyst policies that have ensured the cedi’s appreciation and slowed inflation, among other macroeconomic gains, have played crucial roles in this significant milestone.
“The 5.3% real GDP growth rate clearly signals that the economy is actually responding to the gains that we have made as a country. You realise that inflation has moderated to 18.4%. We currently have a stable exchange rate within the system,” he remarked in an interview with Accra-based JoyNews.
He continued, “We also have a strong reserve, which is supporting the economy. Government-owned fiscal consolidation measures are also working. So clearly, the growth rate of 5.3% just tells us that the economy is actually responding positively to the gains that we have made.”
According to him, this performance is well above expectations, especially considering that the IMF projected Ghana’s 2025 growth at 4.4%, while the government’s own budget anticipated a 4.0% growth rate for the year. The Q1 outturn, therefore, provides a major confidence boost, exceeding both domestic and international forecasts.
Mr. Kuagbedzi also credited government-led fiscal consolidation efforts for playing a significant role in stabilizing the economy, noting that the benefits are beginning to reflect in tangible economic outcomes.
“The IMF actually projected Ghana’s economy to grow by 4.4% by the end of the year. The government-owned budget targeted growth rate is also 4.0% by the end of the year. And so the Q1 or the first quarter real GDP growth rate of 5.3% far outweighs what the target is for the end of the year,” he indicated.
Although many ordinary Ghanaians continue to feel the pinch of high living costs and economic uncertainty, the latest GDP figures offer a glimmer of hope. Experts say that if the country is able to maintain this momentum of growth, it will translate into jobs, incomes, and enhance the standard of living of Ghanaians.
