Deloitte has expressed that Ghana’s projected GDP growth of 4% in 2024 is achievable, although fiscal tightening measures may hinder economic expansion. The firm emphasizes the need for government action to manage budget deficits and address unemployment, while also highlighting the risks posed by energy sector debts.
Deloitte, a prominent professional services firm, assesses that Ghana’s projected GDP growth of 4.0% for 2024 is both reasonable and attainable. The predicted decline in growth is attributed to the government’s fiscal tightening and aggressive expenditure-reduction measures, which could impede the implementation of key policies and programs, potentially slowing economic progress.
Moving forward, Deloitte emphasizes the importance of the government in reversing the trend of high budget deficits, which averaged around 7.5% from 2021 to 2024. This reversal is essential as it could alleviate budget arrears and reduce the growing debt burden induced by the constrained fiscal environment stemming from unsustainable debt levels. The anticipated budget deficit of 3.1% of GDP for 2025 reflects a prudent approach by the government as it engages with the IMF Economic Credit Facility program.
Despite expected reductions in government spending, Deloitte underscores the urgent need for economic growth to combat rising unemployment. The firm’s analysis praises the government’s intention to invest in sectors capable of driving growth and job creation, while also cautioning that balancing these efforts with fiscal restraint presents a considerable challenge.
Deloitte warns that the burgeoning debts in the Energy Sector pose a significant risk to economic growth, as this sector remains critical for industrial expansion. The firm advocates for immediate governmental action to develop a strategy for addressing these debts, in order to secure a reliable power supply that can stimulate economic advancement.
In conclusion, Deloitte’s insights illustrate that while Ghana’s target of 4% GDP growth in 2024 is realistic, the government’s management of expenditure and debt is crucial. Furthermore, addressing unemployment and the challenges within the Energy Sector will be vital for sustaining economic development. The firm calls for the government to prioritize measured spending and efficient debt resolution to foster a stable economic environment.
Original Source: www.myjoyonline.com
