Accra: Ghana's economic growth slowed to 5.1 percent year-on-year in May 2026, compared to the 6.6 percent recorded during the same period in 2025, as revealed by Government Statistician Alhassan Iddrisu.
According to Ghana Web, the latest Monthly Indicator of Economic Growth (MIEG) released by the Ghana Statistical Service (GSS) shows the overall MIEG index increased to 121.9 in May 2026 from 115.9 in May 2025, using 2023 as the base year. The figures indicate that while the economy continued to expand in real terms, the pace of growth moderated during the period.
The services sector remained the main driver of economic activity, recording a year-on-year growth rate of 7.2 percent. This growth was largely supported by strong performances in information and communication, trade, transport, and financial activities. Services accounted for 51.0 percent of total economic growth in May, contributing more than half of the overall expansion recorded during the month.
The industrial sector grew by 4.2 percent, slightly lower than the 4.6 percent recorded in May 2025. The sector's performance was driven mainly by sustained activity in mining and quarrying and accounted for 23.8 percent of the total 5.1 percent growth.
Agriculture recorded the sharpest slowdown, with growth falling to 3.6 percent in May 2026 from 9.8 percent in the corresponding period last year. The GSS noted that crops and livestock continued to lead agricultural activity but cited the lower growth rate was partly due to the high base recorded in the previous year. Agriculture contributed 21.2 percent to overall growth, while net indirect taxes accounted for the remaining 4.0 percent.
The report warned that the slowdown in agriculture requires urgent attention due to its potential implications for food prices, rural incomes, and export earnings. The report also emphasized that while growth is holding up and average incomes can keep rising, the narrowing of growth sources, particularly with more than half now coming from one sector, necessitates immediate action in agriculture.
Iddrisu highlighted that the monthly growth indicators serve as a high-frequency early warning system for policymakers, providing timely signals on economic conditions ahead of quarterly GDP figures. The report urged the government and the Bank of Ghana to incorporate the monthly indicators into budget execution reviews and monetary policy decisions. It also called for targeted interventions in agriculture, including the provision of inputs, irrigation infrastructure, and storage facilities, to support productivity and sustain growth.
Businesses operating in the services sector are encouraged to capitalize on the growing demand in digital and communication-related activities.