Accounting and auditing firm, KPMG, has stated that government actions are beginning to show in the marginal stability of the economy.

Nonetheless, it explained that the headwinds of economic difficulties are still strong with inflation marginally below 40% and stable economic recovery may be achieved beyond 2023.

In its 2024 Pre-Budget Survey led by Senior Partner, Anthony Sarpong, it said, the tightening of global financial conditions coupled with local challenges have had a significant negative impact on the economy.

“By mid-year 2023, the government had achieved significant milestones, including the successful completion of the initial phase of the Domestic Debt Exchange Programme (DDEP) and receipt of the first tranche of the $3 billion Extended Credit Facility.  Concurrently, progress continues with the second phase of the DDEP, and preparations for external debt restructuring are in progress”’.

“The results of these government actions are beginning to show in the marginal stability in the economy. In particular, provisional data released by the Bank of Ghana reveals that Ghana’s economy grew by 3.2% in the second quarter of 2023, down from 3.5% in the same period last year”, it added.

Each year, KPMG surveys respondents from businesses across several industries to gather insights on the impact of government policies on business performance.  In addition, the insights serve as input in shaping the formulation of the national budget.

The report comes at a time when the Ghanaian economy is recovering from the severe economic crisis. Businesses, households and individuals are eagerly anticipating the further direction of the government’s policy in bringing faster growth and economic stability in particular, in 2024 and beyond.

Results from the survey revealed that currency depreciation, high inflation, interest rates, and the tax environment have had significant negative impacts on business performance in 2023. These effects have been amplified by severe restrictions on access to credit, difficulties in retaining skilled labour, power supply constraints, and supply chain disruptions.

Respondents, therefore, recommend a review of a gamut of taxes including the Electronic Transaction Levy, import levies, petroleum levy, and the growth and sustainability levy in the 2024 budget.

In addition, respondents advocate for fiscal policies that are focused on investment in the productive sectors including agriculture, support to manufacturing and export sectors, continuing with digitalisation aimed at widening the tax net, a review of the free Senior High School (SHS) policy and expenditure rationalization.

The survey obtained responses from businesses across Financial Services, Energy and Natural Resources, Telecommunications, Media and Technology, Consumer Goods and Industrial Markets, Hotels and Hospitality.