Ghana’s economy demonstrating resilience amid global economic downturn – S&P Global

S&P Global, the international credit rating agency, has commended Ghana's economy for showcasing resilience despite the global economic downturn caused by the conflict in the Middle East. The agency noted that while business confidence waned in April, with the Purchasing Managers' Index (PMI) falling to 50.3 from 51.4, Ghana's economy still grew by 6.7 percent in the first half of 2026, driven by a robust services sector and a bounce back in oil and gas production.

The agency highlighted that strong gold production continues to bolster the disposable incomes of small-scale miners, thereby bolstering domestic demand. The Information and Communications Technology (ICT) sector also performed well, with year-on-year growth of nearly 31 percent in the second quarter, contributing over 40 percent to the overall GDP growth.

The Bank of Ghana's Composite Index of Economic Activity increased by 13.4 percent year-on-year in May 2026, following a 12.6 percent expansion in March. This growth was attributed to strength in trade, tourism, and industrial production. The agency attributed these improvements to enhanced domestic and external investor sentiment, supported by lower exchange rate volatility and the completion of the comprehensive debt restructuring program.

Regarding Ghana's fiscal position, S&P Global praised the fiscal rules and stricter enforcement of procurement oversight introduced over the past 18 months. These measures were expected to bolster Ghana's fiscal position and improve the management of public finances. The agency acknowledged that Ghana had a history of struggling to maintain fiscal prudence through political and economic cycles, having participated in 18 IMF programs and receiving nearly $7.5 billion in debt relief through the Highly Indebted Poor Countries initiative and the Multilateral Debt Relief initiative.

The rating agency also noted a significant improvement in Ghana's external position due to the success in capitalizing on high gold prices and formalizing small-scale mining production. These developments helped to increase the country's current account to a record surplus of 7.8 percent of GDP in 2025. However, the agency cautioned that Ghana's susceptibility to terms-of-trade shocks was rising, as gold exports now make up more than 60 percent of export receipts.

"Cocoa accounts for nearly 13 percent of total exports, while crude oil contributes close to nine percent," the agency stated. Together, these three commodities account for more than 55 percent of total current account receipts.