Ghana’s industrial output recorded modest growth in the final quarter of 2025, with the Index of Industrial Production (IIP) expanding by 1.9 percent year-on-year, driven largely by strong performance in the manufacturing sector.

The latest data from the Ghana Statistical Service show that overall industrial activity maintained the same growth rate recorded in the third quarter of 2025, signalling relative stability in production levels despite mixed performance across key sub-sectors.

Growth in the period was primarily underpinned by manufacturing, which expanded by 6.1 percent year-on-year, contributing 2.5 percentage points to overall industrial growth. The sector continues to anchor industrial activity, supported by gains in segments such as chemicals, beverages, and basic metals.

The electricity and gas sub-sector also recorded growth of 3.9 percent, reflecting improved output in energy supply, while maintaining a modest contribution to total industrial performance.

However, the gains were partly offset by a contraction in the extractive sector. Mining and quarrying, which holds the largest weight of 53 percent in the index, declined by 1.2 percent year-on-year, dragging overall industrial output.

The decline was largely driven by a sharp drop in crude petroleum and natural gas production, which fell significantly during the period.

Similarly, the water supply, sewerage and waste management sub-sector contracted by 2.1 percent, highlighting continued weaknesses in that segment.

On a quarter-on-quarter basis, industrial growth remained subdued, with output rising marginally by 0.1 percent in Q4 2025, compared to 0.5 percent in the previous quarter.

The slowdown reflects sharp declines in mining activity, which contracted by 4.6 percent, even as manufacturing rebounded strongly with 5.1 percent growth over the same period.

The data suggest that while Ghana’s industrial sector remains on a growth path, expansion is increasingly reliant on manufacturing, with weaknesses in the extractive sector continuing to pose downside risks to overall industrial performance.