Ghana faces fiscal tightrope amidst less ambitious 2025 growth targets – ISSER warns

ISSER has warned that poverty in Ghana may worsen if economic growth remains sluggish. Despite a 5.7% GDP growth in 2024, largely driven by ICT, construction, and mining, growth is projected to slow to 4% in 2025 due to reduced capital investment, tight fiscal policies, and delays in the 24-hour economy initiative.

ISSER Director, Professor Peter Quartey, highlighted Ghana’s missed 2024 fiscal targets, with a 7.9% deficit instead of 4.2%. While debt-to-GDP has fallen to 61.8%, he cautioned against complacency.

He also criticized the ambitious 45.4% tax revenue increase target, warning of compliance issues. With agriculture and industry showing signs of weakness, household incomes may shrink. He urged fiscal discipline, data-driven policies, and mid-year reviews to prevent economic instability.