Ghana’s economy recorded a growth rate of 6.8% in August, showing a stronger performance compared to the 5.3% recorded during the same period in 2025.
The latest figures from the Ghana Statistical Service (GSS) also show an improvement over the 6.0% growth recorded in the second quarter of 2026, suggesting that economic activity is gaining momentum.
However, while the figures point to a growing economy, questions remain about how much ordinary Ghanaians are benefiting from the expansion, particularly in terms of employment, household incomes and improved living conditions.
These concerns are expected to feature prominently as Finance Minister Dr Cassiel Ato Forson presents the 2027 Budget, which is being introduced under the government’s ‘New Economy’ agenda.
The latest Monthly Indicator of Economic Growth (MIEG) report shows that services remain the biggest contributor to Ghana’s economic expansion, recording 10.7% growth in August and accounting for 69.9% of total growth.
Industry also recorded a 4.5% growth rate, while agriculture expanded by 2.6%.
The figures suggest that although the economy is growing, the services sector is doing most of the heavy lifting, while agriculture and industry, which are important for production, job creation and rural development, are growing at a slower pace.
This presents an important challenge for the government as it seeks to use the 2027 Budget to move the economy beyond recovery and towards sustainable growth.
The government’s New Economy agenda is expected to be supported by an investment ambition of $10 billion between 2027 and 2030. However, the success of the programme will depend on how the investment is mobilised, the projects selected and the actual benefits they deliver to the economy.
Ghanaians will be looking for clarity on how much of the proposed investment will come directly from government, the role of private investors and development partners, and the expected results of the programme.
Simply announcing a major investment target will not be enough. The government must demonstrate how the initiative will translate into productive businesses, employment opportunities and improved incomes.
It is also important to understand what the latest growth figures actually represent. The MIEG measures changes in economic activity after adjusting for price movements. It does not directly measure wages, household incomes, job quality or the cost of living.
The index rose to 115.4 in August from 108.0 in the same month last year. However, the GSS has described the figures as provisional, noting that the data can be revised as more information becomes available.
The Statistical Service has also cautioned that the indicator should be treated as an early signal of economic performance rather than a final assessment.
Even so, the figures provide a useful indication of the direction of the economy ahead of the full third-quarter GDP report expected in December.
Services lead economic expansion
The services sector was the strongest performer in August, recording 10.7% growth and contributing 4.8 percentage points to the overall 6.8% expansion.
Information and communication were identified among the major drivers of the sector’s performance.
The growth is encouraging, particularly as services such as finance, trade, transport and communications play an important role in supporting businesses and attracting investment.
However, the bigger question is whether this growth is creating enough decent jobs and improving the earnings of workers.
A strong performance in the services sector does not automatically mean that more Ghanaians are finding employment or earning better incomes.
The government will therefore need to provide clearer evidence of how the sector’s growth is translating into opportunities for young people, women and businesses beyond the major urban centres.
Youth unemployment remains a major concern
The employment situation makes the issue even more important.
According to the GSS, close to two million people aged between 15 and 35 were not in employment, education or training during the third quarter of 2025. This represented 19.5% of the age group.
Youth unemployment also averaged 21.9% across the first three quarters of 2025.
These figures highlight the gap between economic growth and the ability of many young people to participate in productive economic activities.
For the 2027 Budget to make a meaningful difference, the government must explain how its investment plans will create sustainable jobs, provide relevant skills training and support young people to establish and grow businesses.
Beyond announcing projects, Ghanaians need to know how many jobs are expected to be created, the type of employment available and how these opportunities will reach those currently struggling to find work.
Industry and agriculture need greater attention
Industry recorded 4.5% growth in August, an improvement over the 0.8% recorded during the same period in 2025.
Manufacturing was a major contributor, while mining and quarrying also supported the sector’s performance.
Although the improvement is positive, more needs to be done to strengthen Ghana’s productive capacity.
The 2027 Budget will be expected to demonstrate how government investment can support local manufacturing, improve infrastructure, strengthen supply chains and encourage businesses to produce and process more goods locally.
Agriculture, however, presents a different concern.
The sector grew by 2.6% in August, falling from 8.6% recorded in August 2025 and 3.7% in July this year.
Although crop production contributed to the expansion, the GSS noted that livestock is not yet included in the agricultural component of the MIEG.
The slowdown nevertheless raises questions about the government’s plans to improve agricultural productivity, strengthen food supply and increase the incomes of farmers.
Agriculture remains an important source of livelihood for many Ghanaians, and its performance has direct implications for food prices, rural employment and the country’s broader economic development.
Questions over previous government commitments
The government’s ability to deliver on its investment promises will also be measured against programmes announced in previous budgets.
A pre-budget assessment of the 2026 Budget puts total expenditure at GH¢302.46 billion, including GH¢57.53 billion in capital expenditure. It also highlights the GH¢30 billion commitment to the Big Push infrastructure programme.
Other initiatives outlined include Farmer Service Centres, Feed Ghana, oil-palm development, agricultural enclave roads, mechanisation and buffer-stock interventions.
While these programmes were presented as part of efforts to strengthen production and improve livelihoods, questions remain about their implementation and the extent to which they have delivered the expected results.
The 2027 Budget presents an opportunity for the Finance Minister to provide a clear update on these commitments, including the funds released, projects completed, work still ongoing and any challenges affecting delivery.
Introducing new programmes without adequately accounting for previous commitments could make it difficult for the public to assess the government’s progress.
Making the $10 billion New Economy ambition work
The proposed $10 billion investment under the New Economy agenda is expected to be one of the major talking points of the 2027 Budget.
However, the government will need to explain how the amount will be raised and managed.
Ghanaians and investors will want to know how much will come from public funds, how much private investors are expected to contribute and what role development finance institutions and state-backed guarantees will play.
These details are important because investment announcements do not automatically translate into completed projects or economic benefits.
The government must also demonstrate that the projects are properly prepared, financially sustainable and supported by institutions capable of delivering them.
A clear investment plan, with measurable targets and timelines, will help build confidence in the programme and allow the public to track its progress.
Economic growth must also improve living conditions
Beyond infrastructure and industrial investment, the New Economy agenda must recognise the importance of human development.
Education, healthcare and social protection are equally important to building a productive economy.
Businesses need a healthy and skilled workforce, while individuals need access to quality education, healthcare and opportunities to improve their livelihoods.
The government must therefore strike a balance between infrastructure spending and investments in people, while ensuring that public expenditure remains affordable and sustainable.
Ultimately, the success of the 2027 Budget should not be judged only by the size of its allocations or the number of projects announced, but by the results those investments produce.
Ghana’s 6.8% economic growth in August is an encouraging development, but the figures also reveal an economy whose expansion remains heavily dependent on services, with agriculture and industry recording more modest growth.
As the Finance Minister presents the 2027 Budget, the real test will be whether the government’s New Economy agenda can turn these positive economic indicators into decent jobs, stronger household incomes, improved food security and greater opportunities for businesses.
The country needs more than impressive growth figures. It needs an economy in which ordinary Ghanaians can feel the benefits of that growth in their everyday lives.
