Restoring Ghana’s economy requires bold fiscal adjustments – IEA

The Institute of Economic Affairs (IEA) has emphasized the need for significant fiscal adjustments to restore Ghana's economy.

These adjustments may include tax increases and expenditure reductions. Dr. John Kwabena Kwakye, IEA's Director of Research, warned that failing to implement these measures could lead to doubts about Ghana's policy credibility.

He noted that seeking an IMF bailout may be necessary, but it comes with stringent conditions, including expenditure cuts, tax increases, and removal of subsidies, which can be socially costly.

Bold action is required to restore the economy to normalcy and avoid these consequences.