Ghana's economy grew by 6.4 percent in the first quarter of 2026, demonstrating significant resilience. Professor Agyapomaa Gyeke-Dako, an economist at the University of Ghana Business School, urges the government to leverage this momentum. She advocates for strategic investments in agriculture and local manufacturing during the 2026 Mid-Year Budget Review.
This economic expansion marks an increase from 6.2 percent recorded in the same period last year. The growth was not solely dependent on the oil sector; non-oil growth also improved. This positive trend indicates that the government's economic reset efforts are beginning to yield results.
Ghana's economic performance is critical for its broader development trajectory. The country has focused on macroeconomic stabilisation following recent challenges. This growth signals a potential turning point, allowing for a shift towards long-term sustainable development. The Bank of Ghana's tight monetary policy has also helped keep inflation below target.
Professor Gyeke-Dako stated on Joy FM's Super Morning Show, "It appears to me that there has been a deliberate reset and the macro-critical variables are working." She highlighted the importance of directing capital expenditure into high-yielding productive sectors. This approach will ensure that economic growth translates into tangible benefits for citizens.
The government must now focus on channelling capital into sectors that create jobs and boost productivity. Agriculture, which underperformed in the first half of 2026, is a key area for investment. Increased support for value addition and local manufacturing will also be crucial for job creation. These labour-intensive sectors offer the greatest potential for employment.
Ghana's economic indicators show positive trends across several fronts. Inflation remains manageable at about 5.8 percent, below the Bank of Ghana's medium-term target of 6 to 10 percent. The central bank's decision to maintain the policy rate helps anchor inflation expectations. Fiscal management has also improved, with the government making progress in restoring stability. Debt levels have declined, and foreign reserves have strengthened despite exchange rate pressures.
The upcoming Mid-Year Budget Review presents an opportunity for the Finance Minister to update economic projections. Professor Gyeke-Dako expects these updates to reflect the improved performance of the first half of the year. The government should also review its GDP and non-oil growth projections if current trends continue. Maintaining fiscal discipline while protecting businesses from new tax burdens will be essential.
The economist acknowledged potential external pressures, such as geopolitical tensions in the Middle East. These tensions could increase oil prices and transport costs, potentially affecting inflation. However, Ghana's current position, with inflation below target, provides some comfort. The focus must now be on converting stabilisation into sustained economic expansion. This requires a deliberate strategy of targeted investments in key productive sectors. Such a strategy will ensure that Ghana's economic gains are broad-based and inclusive.