Dr. Cassiel Ato Forson, Ghana’s Finance Minister, emphasized the urgent need for structural reforms during the National Economic Dialogue on March 3, 2025. He highlighted the challenges of fiscal inefficiencies, reliance on primary commodities for exports, and rising national debt. Forson advocates for improved spending efficiency and economic diversification to achieve sustainable growth.
The Finance Minister of Ghana, Dr. Cassiel Ato Forson, has recently expressed serious concerns regarding the state of the nation’s economy, highlighting an urgent need for structural reforms to rectify fiscal inefficiencies and foster sustainable growth. During the National Economic Dialogue held on March 3, 2025, he noted that although the economy has expanded by an average of 4.4% in recent years, this growth is primarily attributed to the oil and mining sectors, with minimal advancement in structural transformation.
Dr. Forson pointed out that agriculture remains a significant contributor to the economy, comprising one-third of the GDP, but productivity in the manufacturing sector continues to lag behind. He emphasized that over 85% of Ghana’s exports in 2024 were derived from primary commodities, indicating a substantial reliance on resource extraction.
Additionally, Ato Forson raised alarms about the nation’s escalating debt levels, which have risen dramatically from 20% of GDP in 2016 to 93% by 2022. He remarked, “Persistent fiscal deficits exceeding 4% of GDP between 2008 and 2019 have further strained public finances,” stressing that significant portions of government expenditure on non-mandatory items, such as public sector wages and interest payments, hinder investments in critical infrastructure and social programs.
The Finance Minister also critiqued the inefficiencies in public spending within the education and health sectors, indicating that only a quarter of the education budget is allocated to pre-primary and primary education, while less than 60% of the National Health Insurance budget is utilized for claim payments due to poor resource management.
He urged for immediate and impactful reforms to diversify the economy away from a commodity-centric model and improve efficiency in public spending. Dr. Forson asserted, “We must reset our economy by addressing these systemic challenges to achieve long-term resilience and inclusive growth.” Following his address, discussions were expected to continue, with stakeholders proposing actionable strategies to enhance economic transformation and enforce fiscal discipline.
In summary, Dr. Cassiel Ato Forson has underscored the critical need for structural reforms in Ghana’s economy to overcome fiscal inefficiencies and promote sustainable growth. His insights during the National Economic Dialogue shed light on sector-specific challenges, particularly the reliance on primary commodities and rising debt levels. He advocates for a shift towards diversification and improved resource management to secure the country’s economic future.
Original Source: www.gbcghanaonline.com
