Some market watchers say the ongoing tensions between Israel and Iran—while not currently causing immediate shocks—could present significant risks to Ghana’s economy depending on how the conflict evolves and how prepared the country is to respond.
This comes at a time when Ghana’s economy recorded a 5.3% growth in the last quarter, with several key indicators showing positive momentum.
Economist Professor Patrick Asuming cautioned that external shocks such as geopolitical conflicts could derail that progress.
He explained that Ghana’s heavy reliance on oil imports and exposure to global commodity price fluctuations make it vulnerable to supply chain disruptions and energy price volatility—both of which are likely in the event of a broader escalation in the Middle East.
“It is likely it is going to disrupt oil production but the other thing is disruption of trade routes and so if prices rise it is definitely going to affect the Ghanaian economy,” he said.
He added that :”What we can do to help ourselves is to manage our economy better although the first five months of the year things have been stable but there are still difficult decisions ahead of us”.
Fuel price movements tend to influence more than just the cost of transportation. Increases can contribute to inflation, affect food and logistics costs, and impact overall economic stability. Ghana, which is currently consolidating macroeconomic gains, could face additional pressure if fuel prices remain high for a sustained period.
Meanwhile, President John Dramani Mahama has tasked the Finance and Energy Ministers to closely monitor the escalating tensions between Israel and Iran. He urged them to assess the potential impact on global fuel prices and devise measures to protect Ghana’s recent economic gains.
He made the remarks during his ‘Thank You’ Tour of the Savannah Region.
