Audio By Carbonatix
Ghana's economic outlook for 2023 appears promising, as indicated by the Institute of Statistical, Social and Economic Research (ISSER) in its latest review of the third quarter of 2023.
The report, released on October 31, 2023, anticipates a potential growth rate of 3.0% by the end of the year if current conditions persist.
The ISSER report is optimistic about the resilience of the agriculture sector and acknowledges the government's efforts, particularly the Planting for Food and Jobs Phase 2 Programme, as factors that will contribute to the sector's revival.
ISSER lauds the government's youth in agriculture policies and expresses hope for their effective implementation.
Nonetheless, the report voices concerns about the rapid growth in expenditure, projected at 34.29% in 2023, and the need for more prudent spending.
ISSER warns about a substantial revenue-expenditure gap, amounting to 6.4% of Gross Domestic Product, equivalent to approximately GH¢5.47 billion.
On the subject of taxes, the report sounds a cautionary note, highlighting that "taxing production excessively is affecting industry, promoting imports, and worsening the already high unemployment situation."
ISSER particularly emphasizes the impact of high taxes on food and beverages, which are fueling inflation, and it calls for a critical review of some of these taxes to address these issues.
In planning for the future, ISSER provides valuable advice based on past experiences, suggesting that lessons learned from the domestic debt exchange program should inform government spending habits leading into the 2024 elections.
With another election on the horizon, the report emphasises the need to "Break the Political Business Cycle" of excessive election-year spending.
The report issues a warning about the consequences of the 30-40% haircut on Eurobonds, suggesting that this may negatively impact investor confidence for years to come.
ISSER advocates for a more prudent approach to spending, reduced taxes on production, the broadening of the tax base, stimulation of productive sectors, and a focus on responsible borrowing to ensure a sustainable and resilient economy.
Latest Stories
-
Sheikh Ali Muniru remains Volta regional Imam, says National chief Imam
14 minutes -
GoldBod CEO accuses Minority of hypocrisy over Gold-for-Reserves losses
26 minutes -
Sammy Gyamfi to address alleged losses under gold for reserves programme on Jan 5
32 minutes -
BoG–GoldBod $214m hit is design failure, not market loss – Minority
42 minutes -
Festive season sees minor fires, but domestic cases hit 15–20 daily – GNFS
43 minutes -
CLGB statement on IMF-reported losses under the Gold-For-Reserves programme (G4R)
45 minutes -
Ghanaian scientist Moses Mayonu pioneers metabolomics research on the global stage
57 minutes -
Planetech Week: Israeli Innovation Sweetens Global Tables with Cherry Tomatoes
1 hour -
Minority demands answers on Bawa-Rock Limited monopoly in GoldBod deal
1 hour -
Mahama urged to upgrade Tema General Hospital as TOR begins operations
1 hour -
Three suspects gunned down as police foil robbery on Anwiankwanta–Obuasi Highway
2 hours -
Volta REGSEC holds emergency meeting after Ho Central Mosque shooting
2 hours -
Child Online Africa raises alarm over inappropriate media exposure among Ghanaian children
2 hours -
TOR requires massive capital injection to compete with newer, more advanced refineries – COPEC
2 hours -
TOR restart could influence pump prices depending on refinery’s crude sourcing- ACEP
2 hours
