Ghana’s economy shows recovery signs, yet Deloitte calls for structural adjustments for sustainable growth. The 2025 Budget includes tax reforms and improved revenue strategies. Key aspects include VAT reform, import duty adjustments, a 24-Hour economy initiative, and infrastructure investment. The government must ensure effective implementation of these proposals to achieve economic stability and growth.
Despite encouraging signs of recovery in 2024, Deloitte emphasizes that Ghana’s economy needs structural adjustments for sustainable growth. The 2025 Budget Statement highlights domestic revenue initiatives and expenditure strategies intended to stabilize economic conditions while improving macroeconomic indicators. Key proposals include tax abolitions and a reformed Value Added Tax (VAT) system, with the expectation that these changes will be implemented this year.
Deloitte expressed optimism about VAT reforms, noting that the business community is eager for updates on potential re-alignments of import duties on production inputs, which would support job creation. Furthermore, details on the 24-Hour economy initiative and infrastructure investment strategies, including a $10 billion allocation for development, are anticipated to enhance local growth.
The Ghanaian economy has faced challenges in recent years, partly due to an IMF Extended Credit Facility aimed at restoring macroeconomic stability. Deloitte is particularly interested in government commitments regarding the 24-Hour economy, mentioned during the 2025 Budget presentation by the Mahama administration. Dr. Forson highlighted how this policy could generate jobs and support growth.
The report acknowledges that Ghana possesses a legal framework conducive to implementing fiscal responsibility reforms, which are essential for managing current debt levels, particularly in the energy sector. Deloitte’s commitment focuses on delivering impactful insights regarding these economic developments, keeping stakeholders informed about their implications for society.
In summary, Deloitte highlights the urgent need for structural reforms in Ghana’s economy despite positive recovery indicators. The proposed measures in the 2025 Budget, including VAT reform and adjustments to import duties, aim to stabilize economic performance and promote job creation. The emphasis on a 24-Hour economy and infrastructure investment could further foster sustainable growth, contingent on effective implementation and adherence to fiscal responsibility frameworks.
Original Source: 3news.com
