Ghana Must Prepare for Global Economic Shocks – Terkper Warns

Economic Policy Advisor at the Office of the President, Seth Terkper, has warned that Ghana’s economic gains could be severely impacted if the country fails to anticipate and prepare for potential global shocks—particularly those arising from the ongoing tensions in the Middle East.

Speaking on The Point of View with Bernard Avle on Channel One TV, the former Finance Minister emphasized that waiting until a crisis erupts before initiating safeguards is a dangerous approach.

“Yes, it could—it has, for example, reversed the prices of crude oil,” Mr. Terkper stated, pointing to the price volatility caused by rising geopolitical instability.

“The most important thing for me is to prepare for a crisis, such as what is happening in the Middle East.

“You don’t prepare for a crisis during a crisis, you anticipate the crisis and prepare for crisis when the times are good.”

He reiterated that economic stability must be built on foresight, not reaction, especially for developing countries like Ghana that are vulnerable to global market shifts.

Analysis on how the Middle East crisis could derail Ghana’s economic gains

The Middle East, home to some of the world’s largest oil-producing countries, plays a pivotal role in global energy prices.

As tensions in the region continue to escalate, oil prices are becoming increasingly unstable—a situation that could have ripple effects for Ghana’s economy.

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Ghana, though an oil-producing country, remains heavily dependent on fuel imports and is highly sensitive to international market fluctuations.

A sustained spike in crude oil prices could increase the cost of transportation, production, and utilities locally, fueling inflation and weakening consumer purchasing power.

Furthermore, rising oil prices would place additional pressure on Ghana’s foreign exchange reserves, especially if export revenues from other sectors do not keep pace.

This could destabilize the cedi, undermine investor confidence, and potentially slow down recovery efforts already underway in the wake of the COVID-19 pandemic and recent debt restructuring initiatives.

Source: Liberalprint.com