The Institute of Statistical, Social and Economic Research (ISSER) has released its 2024 Mid-Year Budget Review, titled "A Critical Assessment of the 2024 Mid-Year Budget by ISSER."
The review underscores the importance of tax consolidation and creating a conducive environment for the private sector as crucial steps toward reducing youth unemployment in Ghana.
The 2024 Mid-Year Budget, presented against the backdrop of an IMF programme and ongoing debt rescheduling negotiations with commercial creditors, bondholders, and bilateral creditors, carried high expectations from key stakeholders.
These expectations included tax consolidation, a stable exchange rate, reduced inflation, and measures to create a thriving private sector.
The review reveals that the overall Real GDP growth for the first quarter of 2024 was 4.7%, surpassing the revised target of 3.1% for the year. Non-oil Real GDP growth was 3.3%, down from 3.8% in 2023.
Improved macroeconomic indicators led to upward revisions: overall Real GDP growth was adjusted from 2.8% to 3.1%, and non-oil Real GDP growth from 2.1% to 2.8%.
The industrial sector spearheaded this growth with a 6.8% increase in the first quarter of 2024, a stark contrast to its 2.2% contraction in the same period of 2023.
Despite these positive economic indicators, Afrobarometer surveys from the first quarter of 2024 reveal growing economic hardship among Ghanaians due to rising food prices, skyrocketing transportation fares, and increasing cement and fuel costs.
The surveys highlight that most Ghanaians expect economic growth to translate into reduced youth unemployment and lower living costs, emphasizing the need to assess economic progress in relation to its impact on ordinary citizens.
ISSER's review includes several key recommendations based on the first-half 2024 performance and policies outlined in the mid-year budget:
GDP Growth and Employment: Ghana’s economy, though resilient, is projected to grow at a modest rate of 3.1% in 2024 under the government’s PC-PEG initiatives.
However, youth unemployment remains a significant concern. ISSER emphasizes that various taxes and levies affecting businesses, including a 15% VAT, make the country less attractive for investment.
Streamlining taxes and improving the business environment is crucial for fostering private sector growth and creating jobs to tackle youth unemployment.
The review calls on the government to consolidate taxes and create a more business-friendly environment to support the private sector in generating the necessary employment opportunities for the youth.
This approach is seen as vital for addressing the challenges facing the Ghanaian economy and improving the lives of its citizens.
Latest Stories
-
I’ll give you accessible and quality leadership – Prof Titus assures Lambusie constituency
2 hours -
UCL: Gazzaniga howler sees Girona lose to PSG
2 hours -
UCL: Dortmund start new campaign with 03 win over Club Brugge
3 hours -
UCL: Man City, Inter play out goalless draw at Etihad
3 hours -
Independent presidential aspirant Dr. Sam Ankrah vows to mechanise agriculture if elected
4 hours -
We don’t have to sell ECG; let’s take out political interference – John Jinapor
4 hours -
Government to spend $7.65bn to complete Agenda 111 projects – Health Minister
4 hours -
Privatisation of ECG will be an admission of failure – PURC
4 hours -
Bawumia promises mini harbour, sea defense for Sege
5 hours -
Constant venue change negatively affects Ghana Premier League – Prosper Ogum
5 hours -
We’ll defy injunction orders and protest – Baker-Vormawor
5 hours -
Police secures injunction against Democracy Hub planned protest
5 hours -
MTN launches 4-In-One internet solution for SME operators
6 hours -
Bawumia storms MTN office in Ada in street campaign
6 hours -
The hypocrisy of Ghana’s delegation to COPs: A call to action
6 hours