Prof. Gatsi Endorses 2025 Growth Projection but Warns of Fiscal Challenges
Ghana’s 2025 growth projection of 4.4% aligns with best practices but requires prudent fiscal management to remain credible, according to Professor John Gatsi, Dean of the University of Cape Coast Business School.
Speaking at a parliamentary workshop on the 2025 budget, Prof. Gatsi highlighted the government’s efforts to narrow the fiscal deficit from 7.9% to 3.1% and shift the primary balance from a 3.9% deficit to a 1.5% surplus. However, he cautioned that achieving these targets demands a moderate and realistic growth trajectory.
He stressed that the credibility of macroeconomic programmes is critical to fostering investor confidence, maintaining stability, and sustaining growth. While Ghana’s 2024 economic performance of 5.7% outpaced that of ECOWAS, Sub-Saharan Afca, and emerging market averages, he warned against setting unrealistic growth targets.
Despite improvements in the debt-to-GDP ratio, Ghana continues to miss key ECOWAS benchmarks on budget deficit, inflation, and structural reforms. Prof. Gatsi noted that achieving the projected 11.9% inflation would require significant fiscal discipline and unwavering policy commitment.
“The policy measures seem sound, but their success hinges on absolute commitment to execution,” he added.
His remarks come as Ghana navigates a challenging macroeconomic environment, balancing fiscal consolidation with the need for social and infrastructure investments.
