Middle East Tensions Threaten Ghana’s Economic Stability – Terkper Warns

Seth Terkper, Economic Policy Advisor at the Office of the President, has issued a caution regarding the potential fallout of escalating geopolitical tensions in the Middle East. Speaking on Channel One TV’s The Point of View with Bernard Avle, Terkper emphasized that the situation could significantly derail Ghana’s recent economic gains if not properly anticipated and managed.

He explained that further unrest in major oil-producing regions could lead to a sharp rise in global crude oil prices. For Ghana, a country heavily reliant on oil imports, this would result in higher import costs, added pressure on the cedi, and a renewed spike in inflation — a combination that could strain the country’s fiscal and economic progress.

Terkper pointed out that past and current developments in the Middle East have already impacted global oil markets, reversing gains and fueling price volatility. He highlighted the need for Ghana to be more sensitive to global trends and their cascading effects on local economic indicators.

Underscoring the value of proactive economic planning, Terkper advised that preparation should not begin in the middle of a crisis. Instead, he advocated for long-term strategies that include preemptive measures, particularly in times of relative economic stability, to safeguard against future shocks.

To that end, he called for the strengthening of Ghana’s financial buffers, such as the Sinking Fund and Stabilisation Fund. These reserves, he noted, are crucial tools that can help absorb external shocks and ensure macroeconomic stability during periods of global uncertainty.

Source: Citi newsroom