Projected Decline in Inflation by End of 2025 Achievable If… – Deloitte

Global financial advisory firm Deloitte has projected that Ghana’s inflation rate could decline significantly by the end of 2025, but this will depend on the country’s ability to manage its economic policies effectively.

According to Deloitte, Ghana has made some progress in stabilizing inflation, but sustained improvement will require strategic interventions from both the government and the private sector.

“Inflation control is achievable, but it requires fiscal discipline, currency stability, and increased productivity in key sectors,” Deloitte’s report stated.

Key Factors for Achieving Inflation Reduction

???? Stronger Fiscal Management – Reducing government expenditure and improving budget discipline.
???? Enhanced Revenue Collection – Strengthening tax compliance and expanding the tax base.
???? Currency Stability – Preventing sharp depreciation of the cedi through sound monetary policies.
???? Boosting Local Production – Reducing reliance on imports to curb price volatility.
⚡ Energy & Infrastructure Improvements – Ensuring stable power supply and reducing operational costs for businesses.

Challenges to Overcome

???? High Public Debt – Debt servicing continues to pressure government finances.
???? Global Economic Uncertainties – External factors like oil prices and geopolitical tensions could affect inflation trends.
???? Private Sector Constraints – Businesses face high production costs, impacting economic stability.

Conclusion:

While Deloitte’s inflation projection for 2025 is realistic, Ghana must implement bold and effective policies to sustain economic recovery. The government’s commitment to fiscal discipline and economic reforms will determine whether the country achieves its inflation control target.