Ghana's Economic Development Updates: Salary Increments and Economic Realities

Ghana's Economic Update: Salaries Increment and Economic Realities

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Ghana's Economic Development Updates: Salary Increments and Economic Realities

May 22, 2023

Ghana, like many countries, is currently experiencing economic challenges including high inflation, depreciation of the Cedis and volatile exchange rate culminating into the high cost of living experienced in the country in 2022. The economic hardship has prompted government action and an announcement of a 30% increase in salaries was made in late 2022. The increase in salaries and wages may be well justified, however such policy actions must be weighted more carefully given their potential to trigger further inflation and render futile the efforts to reduce the economic burden. The potential impact on the fiscal gap also requires such policy actions to consider strengthening domestic revenue mobilization as a more sustainable means of meeting government’s high expenditure. 

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