2025 Budget Earns Praise as a Roadmap for Ghana’s Economic Recovery
The 2025 budget statement has received widespread commendation from economic experts, who hail it as a well-structured blueprint for revitalizing Ghana’s economy.
During an X Spaces dialogue organized by Graphic Business in collaboration with First National Bank, Kofi Pianim, Head of Global Markets at First National Bank, and Professor John Gatsi, Dean of Students at the University of Cape Coast Business School, applauded the budget’s emphasis on economic revival, inflation control, and food security.
Key to Success: Discipline and Private-Sector Engagement
The experts emphasized that the budget’s effectiveness would largely depend on disciplined implementation and robust private-sector participation. They also endorsed the government’s modest 4 per cent growth target for 2025, describing it as realistic and a testament to fiscal prudence.
Inflation and Food Security Measures
Professor Gatsi highlighted the budget’s clear policy direction in tackling inflation, particularly through enhanced food production and reduced dependency on imports. Meanwhile, Mr. Pianim urged Ghanaians to refrain from hoarding dollars, warning that such practices worsen inflationary pressures.
Role of the Private Sector and IMF Considerations
Both experts underscored the private sector’s crucial role in ensuring the budget’s success. Professor Gatsi commended the government’s decision to reject excessive Treasury bill issuances, while Mr. Pianim encouraged private businesses to strengthen their operations and urged the government to lower taxes to stimulate job creation and stabilize the cedi.
Growth Targets and Bank Recapitalization
The budget’s 4.2 billion cedi allocation for recapitalizing the National Investment Bank (NIB) and Agricultural Development Bank (ADB) drew mixed reactions.
While Professor Gatsi supported ADB’s role in cocoa financing, he opposed any potential merger between the two banks.
In conclusion, the experts acknowledged that while the budget outlines a promising path forward, its success would ultimately hinge on careful execution and collaboration across all economic sectors.
