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.