Accra:Economic activity in Ghana expanded by 7.4 percent year-on-year in July 2026, driven by robust growth in the services sector and a rebound in industry, indicating improving domestic conditions. The government anticipates full-year growth to exceed the International Monetary Fund's (IMF) forecast of 5.7 percent.
According to Ghana Web, the Ghana Statistical Service's (GSS) Monthly Indicator of Economic Growth (MIEG) revealed that services contributed significantly to economic expansion, accounting for 63.8 percent of overall growth. Industry's recovery was supported by stronger activity in mining and quarrying.
The July performance benefits from heightened business and consumer confidence, increased private-sector credit growth, and a stronger fiscal position. However, challenges such as slowing agricultural growth and renewed inflationary pressures could hinder sustained recovery efforts.
The MIEG index rose to 121.6 in July from 113.2 in the same period of 2025. The services sector grew by 12.2 percent, an increase from 6.7 percent a year earlier, largely driven by the information and communication sub-sector. Industry expanded by 5.4 percent, reversing a marginal growth of 0.4 percent in July 2025, with its index increasing to 117.1 from 111.1.
In contrast, agriculture grew by 3.7 percent, down from 8.2 percent a year earlier, contributing 14.1 percent to overall growth. The GSS noted that growth in crops and livestock helped raise the agricultural index to 113.7 from 109.6. Net taxes added 1.6 percent to overall economic growth.
The government's outlook is optimistic, expecting to surpass the IMF's revised projection of 5.7 percent growth for 2026. Finance Minister Dr. Cassiel Ato Forson expressed confidence in exceeding this estimate, attributing it to fiscal discipline and reforms aimed at restoring macroeconomic stability.
Ghana's 2026 growth forecast was upgraded by the IMF from 4.6 percent to 5.7 percent amidst stronger domestic activity, although quarterly data show a slower expansion pace. Real GDP grew by 6.0 percent in the second quarter of 2026, below the previous year's 6.6 percent. Non-oil GDP growth also decelerated to 5.4 percent from 8.5 percent.
The Composite Index of Economic Activity showed more optimism, recording 14.9 percent annual growth in July compared to 6.1 percent a year earlier, supported by private-sector credit, international trade, and consumption.
The GSS cautioned that the MIEG is an experimental statistic subject to continuous improvement and revisions. The next release, covering August 2026, is expected on November 11.