Ghana Private Sector Growth Remains Weak

The S&P Global Ghana PMI rose slightly to 50.6 in March 2025 from 50.5 in the prior month, indicating mild expansion in the country's private sector for the second month. Both output and new orders continued to rise, albeit marginally, while companies continued to expand their staff numbers. On the price front, inflationary pressures softened, as both input costs and output prices increased at weaker rates than in February.

The S&P Global Ghana PMI rose to 50.5 in February 2025 from 47.9 in January, signaling a marginal improvement in private sector activity after three months of contraction. The growth was driven by expansions in output, new orders, and employment, supported by stronger demand and improving economic conditions after last year's elections. Business activity increased, and new orders rose for the fourth time in five months, reflecting higher client demand and successful marketing. Moreover, employment rebounded solidly, and purchasing activity also increased, boosting inventories. On prices, input cost inflation remained sharp due to currency weakness and rising fuel prices, while staff cost inflation eased. As a result, firms raised selling prices faster, with charge inflation picking up from January. Lastly, business sentiment remained above average, with firms optimistic about output growth, currency stability, and supportive policies, indicating momentum in 2025 if conditions improve.