Economy grows by 4.5% in July 2025 — GSS Report

The Ghana Statistical Service (GSS) has started a more frequent economic growth measure, with the maiden monthly indicator of economic growth (MIEG), revealing a 4.5 per cent year-on-year growth in the economy for July 2025. 

However, it was a slower growth rate compared to the same period last year, when the economy grew by 8.3 per cent.

The MIEG captures changes in economic activity monthly. It captured the aggregated level for the whole economy, as well as for agriculture, industry and services.  

The new index, launched by the GSS in Accra yesterday is designed to bridge the gap between quarterly Gross Domestic Product (GDP) figures, offering policymakers and investors a timelier gauge of economic trends. 

Sectors’ performance

The latest data showed that the economy maintained its upward trajectory, with the MIEG index climbing to 110.2, up from 105.4 in the same month last year.

The economic growth, according to the data, was driven by a resurgent agricultural sector, which saw its MIEG growth accelerate by 8.0 per cent compared to 2.4 per cent in July of 2024.

This indicates a faster pace of expansion in the agriculture sector, compared to growth in July 2024.

The sector contributed 37.1 per cent of the 4.5 per cent growth in the MIEG.

The MIEG for the services sector grew by 6.4 per cent, up from 4.5 per cent in July 2024.

This indicates continued strong performance in the services sector. It contributed 58.4 per cent of the 4.5 per cent growth in the MIEG.

In contrast, the industrial sector’s MIEG barely grew, registering a marginal 0.1 per cent increase for July this year compared to 17.7 per cent in July last year.

This is a marginal expansion in the industry sector, but much lower when compared to the same period last year.

The sector, however, contributed 0.9 per cent of the 4.5 per cent growth in the MIEG.

Also, the Net Indirect Taxes contributed 0.20 percentage points to the country’s economic growth.

Essence

The Government Statistician, Dr Alhassan Iddrisu, presenting the findings, explained that the new indicator was a "leading high-frequency indicator of GDP growth" that would help monitor the impact of policy interventions and improve the forecasting of economic activity.

He stated: “Overall, the July 2025 MIEG results actually showed that Ghana's economy continues to expand, and led by a resilient growth in services and agriculture, even as industry models.”

He said the MEIG provided early insights that were needed to understand the trends and guide decisions that keep the country’s economy moving forward.

The government statistician said the MIEG was expected to provide timely insights to support swift and evidence-based policy responses; frequent updates to monitor the effectiveness of policy interventions, as well as more frequent information to support the forecasting of activity ahead of quarterly and annual GDP estimates.

The MIEG, according to him, would also provide monthly information about the drivers of the changes in growth and a deeper understanding of how business cycles and external shocks impacted the Ghanaian economy.