Deloitte asserts that Ghana’s projected 4% GDP growth in 2024 is attainable despite anticipated fiscal tightening. High budget deficits need addressing to prevent increased debt burdens. The government’s cautious expenditure is essential for restoring investor confidence. Economic expansion is critical for tackling unemployment, and energy sector debts pose a significant risk to growth.
Deloitte has stated that Ghana’s projected real GDP growth of 4% for 2024 is both reasonable and achievable. The firm attributes potential declines in GDP growth to the government’s planned fiscal tightening and expenditure cuts, which may hinder the implementation of significant policies and programs and slow economic growth in the short term.
The report emphasizes the importance of reversing the trend of high budget deficits, currently averaging 7.5% from 2021 to 2024. Deloitte warns that maintaining a steady fiscal approach is essential to reduce budget arrears and the government’s debt burden amidst an unsustainable fiscal environment.
Deloitte points out that the anticipated 3.1% deficit of GDP for 2025 reflects the government’s prudent strategy while it works through the International Monetary Fund’s Economic Credit Facility program. The firm supports the government’s cautious spending approach to enhance investor confidence and promote macroeconomic stability.
Despite the anticipated spending cuts, Deloitte asserts that economic expansion is crucial to addressing rising unemployment rates. The firm commends the government’s focus on investing in sectors that can stimulate growth and create jobs, though it warns that achieving this balance will be challenging.
Furthermore, the report identifies the growing debts in the Energy Sector as a significant threat to projected economic growth, highlighting the need for intervention to prevent a potential crisis. It calls for the government to engage stakeholders to devise strategies for settling energy debts to ensure reliable power supply for industrial growth.
Deloitte’s analysis indicates that Ghana’s anticipated GDP growth of 4% is attainable, provided the government manages its fiscal policies effectively. Emphasizing the need for prudent spending to restore investor confidence, the report also highlights the importance of addressing energy sector debts to support economic stability and job creation. A balanced approach is crucial for sustainable growth amidst current challenges.
Original Source: www.myjoyonline.com
