Ghana’s 2025 Budget prioritizes fiscal stability, but Deloitte has warned that economic growth remains essential to tackling the country’s rising unemployment.
While government spending cuts aim to reduce the budget deficit and sustain macroeconomic stability, the firm cautions that without deliberate investment in growth sectors, job creation will remain a challenge.
Deloitte acknowledges that the government’s fiscal tightening aligns with the goal of stabilizing the economy, but it emphasizes that Ghana must expand its economy to address unemployment concerns.
“Notwithstanding the expected cuts in government spending, the need for government to facilitate economic growth has become even more critical as the expansion in the economy is required to address the mounting unemployment situation,” the report stated.
The firm notes that achieving this delicate balance—between reducing expenditure and stimulating job creation—will not be easy.
The government has projected 4.0% GDP growth for 2025, a drop from 5.7% in 2024, reflecting the impact of tighter spending. While this slowdown is expected, Deloitte warns that if spending cuts limit funding for critical programs, Ghana risks slowing down its economic momentum at a time when job creation is urgently needed.
With unemployment rising, many young Ghanaians will be looking to the government and private sector for opportunities, making economic expansion more crucial than ever.
One of the biggest risks to this growth outlook is Ghana’s mounting energy sector debts, which Deloitte sees as a ticking time bomb. A power crisis could cripple industrial growth if the government does not act swiftly.
Manufacturing, mining, and other key industries rely on stable and affordable electricity, but with debts to Independent Power Producers (IPPs) piling up, Ghana could soon face disruptions in energy supply. Deloitte urges the government to engage energy sector stakeholders and develop a clear roadmap for settling debts before the situation worsens.
Beyond the energy crisis, Deloitte supports the government’s plan to prioritize investment in high-growth sectors to drive employment. However, it warns that expectations regarding job creation must be realistic, as the government is placing macroeconomic stability ahead of immediate job growth.
While fiscal discipline is crucial, Ghana must also focus on attracting investments, supporting businesses, and boosting key industries that can absorb labor in large numbers.
Deloitte also highlights the private sector’s role in economic recovery, stressing that businesses need a stable and predictable environment to thrive.
While cutting government spending is a necessary step, it should be accompanied by measures that stimulate entrepreneurship, attract foreign investment, and boost local industries. Without these efforts, economic growth may not translate into real benefits for the average Ghanaian.
