Deloitte Affirms Ghana’s 4% GDP Growth Projection for 2024 as Achievable
Deloitte claims Ghana’s expected 4.0% GDP growth in 2024 is achievable. The projected decline in growth is due to fiscal measures. Reducing budget deficits and addressing energy sector debts are critical for economic stability and job creation.
Deloitte, a professional services firm, has stated that Ghana’s projected real Gross Domestic Product (GDP) growth of 4.0% for 2024 is both reasonable and achievable. This assessment stems from the understanding that forthcoming government fiscal tightening and expenditure cutbacks may hinder the implementation of pivotal policies and programs, thereby leading to a modest decline in GDP growth for 2025.
The firm emphasizes the necessity for the government to address high budget deficits, which have averaged around 7.5% from 2021 to 2024, to mitigate increasing arrears and debt under current fiscal constraints. The anticipated budget deficit of 3.1% of GDP for 2025 is recognized as a prudent strategy while navigating the International Monetary Fund’s Economic Credit Facility program.
Deloitte stresses that although the government spending cuts are set to continue, fostering economic growth is increasingly critical, particularly to combat rising unemployment rates. Investment in targeted sectors is viewed as essential for economic expansion and job creation, although Deloitte cautions that balancing these initiatives with macroeconomic stability is inherently challenging.
Furthermore, Deloitte warns that the escalating debts within the Energy Sector pose a significant threat to projected economic growth. With industrial expansion being primarily reliant on the energy sector, the firm calls for urgent dialogue among key stakeholders to establish a roadmap addressing these debts, aiming for a consistent energy supply to support economic development.
In conclusion, Deloitte asserts that Ghana’s anticipated GDP growth of 4.0% in 2024 is feasible, contingent on the government’s fiscal strategies. It is crucial for the government to reduce budget deficits while promoting economic growth to decrease unemployment levels. Moreover, immediate attention to the Energy Sector debts is vital to ensure stable economic progress and to realize job creation objectives.
Original Source: www.myjoyonline.com
