Ghana’s fiscal space remains limited despite economic gains – IERPP

The Institute of Economic Research and Public Policy (IERPP) is questioning whether Ghana’s recent economic gains have translated into genuine fiscal space, warning that headline improvements may not reflect the country’s underlying financial position.

The institute called for caution in interpreting recent economic gains, arguing that government policy should focus on strengthening revenue mobilisation, protecting reserves and creating sustainable conditions for investment rather than assuming broad fiscal flexibility.

He explained that the reduction in the debt ratio was partly driven by the rebasing of Ghana’s Gross Domestic Product (GDP), which increased the size of the economy on paper without a corresponding increase in actual output.