Ghana’s Economic Recovery Requires Structural Adjustments…

Ghana’s economy, while showing recovery signs, requires necessary structural adjustments as per Deloitte. Key elements in the 2025 Budget include tax reforms and the 24-Hour economy initiative aimed at stabilizing growth. Deloitte underscores the importance of these measures for debt sustainability and economic development.

Ghana’s economy is showing signs of recovery, however, it needs significant structural adjustments, as indicated by Deloitte, a prominent professional services firm. The government has proposed several domestic revenue mobilization measures in its 2025 Budget Statement aimed at stabilizing the economy and enhancing macroeconomic indicators.

One of the key highlights of the proposed budget is the elimination of certain taxes and the anticipated reform of the Value Added Tax (VAT) system. Deloitte emphasized that the business community will greatly appreciate the expected VAT reform, which they hope will be executed within the current calendar year. Additionally, there is an expectation for the realignment of import duties, especially on production inputs, to foster business growth and job creation.

Deloitte is also seeking more information regarding the 24-Hour economy initiative, which is projected to stimulate local growth and the proposed “Big Push” infrastructural development program, with a funding allocation of $10 billion for infrastructure enhancements. The firm’s analysis mentions that the Ghanaian economy has faced significant challenges aimed at achieving macroeconomic stability under the International Monetary Fund’s Extended Credit Facility program.

Furthermore, specific commitments from the government are awaited, particularly on the 24-Hour economy policy introduced by the Mahama administration. Dr. Forson highlighted the potential of the 24-Hour economy to generate jobs and ensure sustainable economic growth. He expressed hope for tighter fiscal responsibility rules to maintain debt sustainability, especially given the current debt burden in the energy sector.

Deloitte remains dedicated to making a significant impact and aims to keep clients and the public informed of the evolving economic landscape and its implications.

In summary, despite positive signs of recovery, Ghana’s economy needs structural adjustments to achieve sustainable growth. Specific measures outlined in the 2025 Budget Statement, including tax reforms and the 24-Hour economy initiative, are crucial for economic stability. Deloitte’s insights emphasize the importance of government commitments to improve macroeconomic indicators, particularly regarding fiscal responsibility and addressing the energy sector’s debt issue.

Original Source: 3news.com