The Institute of Statistical, Social, and Economic Research (ISSER) has issued a cautionary call for fiscal restraint as the country heads into the 2024 election year.
Stressing the importance of maintaining recent economic gains, ISSER urged, “We admonish the government not to overspend, especially with 2024 being an election year.”
In its State of the Ghanaian Economy Report, ISSER highlighted the risks of election-year spending on Ghana’s financial stability, underscoring the need for fiscal discipline to protect key improvements in inflation, interest rates, and exchange rate stability achieved in 2024.
“In conclusion, 2024 holds greater growth prospects, and key macroeconomic indicators—such as inflation, interest rates, and exchange rate depreciation—remain relatively improved compared to 2022,” the report noted.
Professor Peter Quartey, ISSER’s director, warned that Ghana must “break away from the election business cycle” if it is to secure these gains long-term.
“The true state of the economy will emerge in Q1 2025,” he added, explaining that overspending in an election year can obscure underlying economic vulnerabilities and postpone needed reforms.
The report highlights the longstanding challenge posed by increased government expenditure in election years, often leading to inflationary pressures and fiscal deficits.
“Maintaining the current trajectory of improved macroeconomic indicators requires that we do not overspend or lose focus in an election year,” Professor Quartey emphasized.
As Ghana continues its IMF-backed recovery plan, ISSER stresses that staying within fiscal targets could reinforce investor confidence and set the foundation for sustained growth.
By exercising fiscal prudence in 2024, ISSER suggests that Ghana can achieve a stable economy that benefits its citizens well beyond the election cycle.
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