Services sector emerges as key driver of first-quarter GDP growth

Ghana’s economy maintained strong momentum in the first quarter of 2026, with industry and services sectors outperforming their long-term averages and helping propel overall real Gross Domestic Product (GDP) growth to 6.4 percent. Data released by the Ghana Statistical Service (GSS) showed that industry expanded by 6.9 percent while services grew by 7.1 percent during the period, both exceeding their historical growth trends. Agriculture, however, grew by 4.0 percent, slightly below its long-run average, reflecting mixed performance within the sector. According to the report, industry and services were the main engines of growth, with the services sector accounting for 45.7 percent of GDP and industry contributing 32.9 percent. The strong performance underscores the increasing role of service-oriented and industrial activities in driving economic expansion. The report further indicated that seasonally adjusted quarter-on-quarter GDP growth stood at 1.6 percent in the first quarter, signalling sustained economic momentum compared with previous quarters. Within the agriculture sector, forestry and logging emerged as a bright spot, recording a sharp rebound of 9.0 percent growth after contracting by 2.5 percent in the same period last year. The subsector contributed positively to overall agricultural growth and reflected improved activity in timber and related industries. Crop production also remained positive, growing by 4.7 percent, while livestock expanded by 5.7 percent. Cocoa production recorded growth of 3.8 percent, although this was significantly slower than the 23.1 percent growth recorded in the first quarter of 2025. Fishing, however, weighed heavily on agricultural performance. The subsector contracted by 18.5 percent, reversing the 16.4 percent growth recorded a year earlier and emerging as the sole major drag on the sector. The decline reduced agriculture’s overall contribution to economic growth despite gains in forestry, crops and livestock. The GSS noted that the economy’s broad-based growth was supported by stronger performances across most sectors, with industry and services operating well above their long-term averages. The latest figures suggest that Ghana’s economic recovery remains on track, although challenges in the fishing industry continue to pose risks to agricultural expansion.