Finance Minister, Dr. Cassiel Ato Forson, has called for comprehensive economic reforms to propel Ghana to upper middle-income status by 2038.
Speaking at the National Economic Dialogue on Monday at the Accra International Conference Centre, Dr. Forson emphasized that without significant policy changes, Ghana might not achieve this milestone until after 2050.
“Without comprehensive reforms, unfortunately, Ghana will only achieve upper middle-income status after the year 2050, and we cannot wait until 2050 before we become an upper middle-income country,” Dr. Forson stated.
He further explained that with moderate reforms, the nation could attain this status by 2042. However, implementing ambitious reforms could accelerate this timeline before 2038.
“We have no choice but to introduce measures to reset our economy. If we are to do well and introduce very ambitious reforms, Ghana will indeed become an upper middle-income country before the year 2038,” he added.
Dr. Forson’s remarks highlight the government’s commitment to resetting and strengthening Ghana’s economy through well-structured and ambitious reforms.
Meanwhile, the Finance Minister said public debt has risen from 20% of GDP in 2006 to 93% in 2022, largely due to fiscal imbalances. Government spending has outpaced revenue, and interest payments continued to constrain fiscal space.
Further, revenue mobilization remained weak, stressing that, Ghana’s tax-to-GDP ratio is below its neighboring peers, with Value Added Tax (VAT), income tax and tax exemptions costing the government 3.9% of GDP, necessitating urgent reforms.
He also said Ghana’s cocoa sector is also under strain, with production dropping nearly 50% in the last three years.
He revealed that existing forward sales contracts have resulted in revenue losses of $840 million, while smuggling of cocoa to neighboring countries has worsened due to pricing disparities. Additionally, Ghana Cocoa Board’s debt has reached $32.5 billion, with $9.7 billion due by September 2025.
Nonetheless, as the government vows to reduce debt and fix the country, experts say that economic development thrives on implementing disciplined policies rather than mere bureaucratic sayings.
The National Economic Dialogue which brought together policymakers, economists, business leaders, and civil society organizations saw deliberations on strategies for long-term economic stability and growth.
Further discussions focused on shaping policies that would drive sustainable development and enhance the nation’s economic trajectory.
