The 6.4 Percent Question: Is Ghana Finally Spending Its Money on the Right Things?

Let me start with a number that should make every Ghanaian feel cautiously optimistic. Six point four percent. That is how fast our economy grew in the first quarter of 2026. That is slightly higher than the 6.2 percent we recorded in the same period last year. It is not a fluke. It is not a one-off. It is evidence of continued resilience and broad-based expansion across key sectors. The services sector is booming. Industry is recovering. Agriculture is growing, even with some painful contractions. And the government, according to the Ghana Statistical Service, is spending money. But not just anywhere. At the right places.

Let me break down the Accra Street Journal's numbers from the first-quarter Gross Domestic Product estimates released by the Government Statistician, Dr. Alhassan Iddrisu.

Non-oil GDP grew by 6.3 percent. That is crucial. It means our growth is not dependent on oil. It is diversified. That is a sign of a maturing economy. When oil prices fall, or when production dips, the rest of the economy can keep moving.

The services sector remained the largest contributor to economic growth, recording an expansion of 7.1 percent. This is where the excitement is. Information and communication expanded by a staggering 25.2 percent. That is not growth. That is a surge. Transport and storage grew by 13 percent. Trade activities grew by 7 percent. The digital economy is not coming. It is here. And it is pulling the rest of the services sector along.

The industrial sector also posted a strong performance, growing by 6.9 percent compared to 4.1 percent in the first quarter of 2025. That is a significant acceleration. Mining and quarrying expanded by 10.7 percent. Oil and gas production recovered with 7 percent growth. The extractive industries are back. And they are bringing jobs and foreign exchange with them.

Agriculture grew by 4 percent. That is modest but respectable. However, the headline hides a disaster within. The fishing sub-sector contracted by 18.5 percent. That is not a decline. That is a collapse. Our fisherfolk are struggling. The ocean is being overfished. The waters are being poisoned by galamsey. The canoes are ageing. The youth are leaving. This is not just an economic statistic. It is a humanitarian crisis unfolding along our coast.

On a quarter-on-quarter basis, seasonally adjusted GDP grew by 1.6 percent. That signals sustained economic momentum. The Composite Index of Economic Activity remained in growth territory throughout the quarter, with rates of 6.1 percent in January, 7.7 percent in February, and 5.4 percent in March. Activity is consistent. It is not spiking and crashing. It is steadily climbing.

Now, let me address the headline that everyone is talking about. The government is spending. Capital spending, specifically. The GSS data confirms significant capital expenditure in the first quarter. That means money is going into roads, bridges, hospitals, schools, and other infrastructure. Not into salaries. Not into consumption. Into assets that will generate returns for years to come. That is the difference between spending that grows the economy and spending that simply keeps it afloat.

Economists say the first-quarter performance provides a positive signal for Ghana's economic outlook in 2026. Strong growth in services and industry is expected to support employment creation, investment, and revenue generation. The digital sector alone, growing at 25 percent, could be a game-changer. Every job created in tech supports multiple jobs in retail, transport, and real estate. The multiplier effect is real.

But let me also give you the warnings. The fishing sub-sector is in free fall. The government must intervene. Not with speeches. With policy. With enforcement against illegal fishing. With support for alternative livelihoods. With investment in aquaculture. The 18.5 percent contraction is not sustainable. If it continues, coastal communities will be devastated.

Accommodation and food services are also underperforming. That is surprising given the growth in trade and transport. It suggests that tourists and business travellers are coming, but they are not staying in hotels or eating out as much. Perhaps the hotels are too expensive. Perhaps the quality is inconsistent. Perhaps the marketing is weak. The government and the private sector should investigate.

Water and sewerage activities also need attention. Clean water is not a luxury. It is a necessity. And it is a prerequisite for public health and industrial growth. Without reliable water, factories cannot operate. Without proper sewerage, diseases spread. The sluggish growth in this sector is a bottleneck that will eventually constrain other sectors.

Dr. Iddrisu stressed the importance of sustaining macroeconomic stability, accelerating infrastructure development, deepening digital transformation, and promoting private sector-led growth. That is the right prescription. Stability attracts investment. Infrastructure enables productivity. Digital transformation creates new industries. Private sector-led growth is sustainable in a way that state-led growth is not.

The 6.4 percent growth is good news. But good news is not an excuse for complacency. The government must stay the course on fiscal discipline. The Bank of Ghana must keep inflation under control. The private sector must be empowered to create jobs. And the fishing communities must not be forgotten. An economy that grows at 6.4 percent but leaves entire communities behind is not a successful economy. It is an incomplete one.

The numbers are moving in the right direction. Now we need the policies to keep them there. And the compassion to ensure that no one is left behind. That is the challenge. And it is one that we must meet. The data says we are capable. The question is whether we have the will.

.

Source Used: Accra Street Journal

   Comments0