Deloitte has affirmed that Ghana’s expected 4% GDP growth for 2024 is reasonable. Factors impacting this outlook include fiscal tightening and expenditure cuts. The firm emphasizes the need for prudent financial management to address high deficits and the importance of promoting growth to mitigate unemployment. The energy sector’s debts also pose a threat to economic stability.
Deloitte, a prominent professional services firm, has expressed that Ghana’s anticipated real Gross Domestic Product (GDP) growth of 4.0% for the year 2024 appears both reasonable and attainable. This projection is influenced by the expected fiscal tightening and aggressive expenditure reductions proposed by the government, which may hinder the rollout of significant policies and programs, thereby impacting economic growth.
Furthermore, Deloitte highlighted the necessity for the government to address chronic budget deficits, which averaged about 7.5% between 2021 and 2024. They emphasized that such deficits would exacerbate budget arrears and elevate the debt burden in the context of Ghana’s currently constrained fiscal environment. The projected deficit of 3.1% of GDP for 2025 indicates prudence from the government as it engages with the International Monetary Fund (IMF) Economic Credit Facility program.
In the face of expected government spending cuts, Deloitte underscored the critical need for measures that promote economic growth to combat rising unemployment levels. Although the commitment to invest in sectors capable of stimulating economic growth and job creation is admirable, achieving a balance between growth and macroeconomic stability will be arduous. The firm advised caution regarding 2025 job creation expectations given the moderate growth anticipation.
Additionally, Deloitte identified growing debts and arrears in the energy sector as a significant threat to projected economic growth. The energy sector is essential for industrial expansion, which is critical for overall economic development. Therefore, swift governmental action to formulate a roadmap for settling these debts is recommended to ensure a reliable power supply essential for supporting economic growth.
In summary, Deloitte’s analysis indicates that Ghana’s projected GDP growth of 4% for 2024 is attainable, but cautious fiscal management and strategic investments are crucial for economic stability and job creation. The government’s focus on reducing budget deficits and addressing energy sector debts will be vital in fostering a sustainable economic environment moving forward.
Original Source: www.myjoyonline.com
