Deloitte asserts Ghana’s projected GDP growth rate of 4% for 2024 is achievable but warns of challenges, including high budget deficits and Energy Sector debts. The firm stresses the need for government measures that balance fiscal responsibility with economic growth initiatives to combat rising unemployment. Immediate action is necessary to stabilize the energy supply for sustainable growth.
Deloitte, a professional services firm, has stated that Ghana’s projected GDP growth rate of 4.0% for 2024 is both reasonable and achievable. They attribute the anticipated decline in real GDP growth primarily to the government’s planned fiscal tightening and aggressive expenditure cuts, which may hinder the implementation of key policies and programs, resulting in a slowdown of economic growth in the short term.
Deloitte emphasizes the necessity for the government to reverse the trend of significant budget deficits, which have averaged approximately 7.5% between 2021 and 2024. Such deficits exacerbate budget arrears and the debt burden, especially within the constrained fiscal framework stemming from unsustainable debt levels. The firm views the anticipated 3.1% GDP deficit for 2025 as a prudent signal from the government as it works within the IMF Economic Credit Facility program.
Despite the expected reduction in government spending, Deloitte highlights the critical need for economic growth to tackle rising unemployment. The firm praises the government’s strategy to prioritize investments in key sectors aimed at driving job creation while cautioning that maintaining a balance between macroeconomic stability and growth remains a challenge.
Deloitte predicts that job creation expectations for 2025 should be tempered due to the moderate growth outlook, emphasizing that macroeconomic stability must serve as a foundation for sustainable future growth. Furthermore, they identify growing debts in the Energy Sector as a significant threat to projected economic growth. Immediate engagement with industry players is essential to address these debts effectively and ensure stable power supply, which is vital for economic expansion.
In conclusion, Deloitte’s analysis indicates that Ghana’s expected GDP growth rate of 4% in 2024 is attainable, given appropriate governmental measures. However, challenges such as high budget deficits and Energy Sector debts present significant obstacles that must be addressed to ensure sustainable economic growth and job creation. A focus on macroeconomic stability is critical to fostering investor confidence and facilitating broader economic expansion.
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