2025 budget reflects business expectations but requires more work – Prof. Gatsi

The Dean of the University of Cape Coast School of Business, Professor John Gatsi, has described the 2025 financial budget as a “reflection of the expectations of the business environment and the Ghanaian people.”

While acknowledging that the budget tackles key concerns such as the cost of living and aims to create a more flexible and business-friendly economy, he noted that significant work is still required to fully achieve these objectives.

Speaking on Graphic Business X Dialogue under the theme "2025 Budget: What’s in it for You and Your Business," Prof. Gatsi stressed the importance of long-term financial instruments in the domestic market. 

He also highlighted the misalignment between Treasury bill rates and lending rates, stating that despite a reduction in government borrowing costs, businesses are still struggling with high interest rates.

He further emphasised the need for exchange rate stability, warning that any mismanagement could worsen inflation and other economic challenges.

"I think what is critical is to watch the sentiment of the monetary authorities regarding the exchange rate. If we sleep again, it will hurt inflation, it will hurt almost everything," he cautioned.

Prof. Gatsi called for stronger collaboration between the central bank and fiscal authorities to ensure a unified approach in driving sustainable economic growth.

"There is much more need for collaboration between the way the central bank thinks and the way the fiscal authority thinks," he added.