NPP’s Dennis Aboagye details how Russia-Ukraine war is affecting Ghana’s economy

Presidential Staffer, Mr Dennis Miracles Aboagye has explained how the ongoing warfare between Russia and Ukraine is affecting Ghana’s economy.

He explained on the New Day show with Johnnie Hughes on TV3 Monday August 8 that Ghana imports goods from Russia and Ukraine.

Also, he said, Ghana imports from other countries that also rely on goods and services from Russia and Ukraine to boost their productions.

For instance, he explained, Vietnam, Brazil, America and Turkey are countries that Ghana imports goods from. These countries have also been affected by the war because they also rely on the two feuding European countries for supplies to be able to produce.

Contributing to a discussion on the economic challenges in Ghana, the former Municipal Chief Executive for Akuapem North said “Let me tell you how the Russia-Ukraine war affects us. We import somethings from Russia, we import somethings from America, Vietnam Brazil, Turkey and others.

“Those people rely on Russia and Ukraine to be able to boost their production before they are able to supply us. Because there is Russia-Ukraine war, the supply to us directly in terms of what we buy from Russia is affected.

“The supply of these fertilizers and and other things to Brazil, Turkey, Vietnam, America are affected, for which reason our import from Russia is very expensive, our import from Vietnam, US, Turkey, Brazil is also expensive and even not flowing because they are also affected by the Russian war, this is simple value chain supply.”

Recently, the International Monetary Fund (IMF) staff team led by Carlo Sdralevich that concluded its visit to Ghana with the government of Ghana on Wednesday July 13, also indicated that the war is affecting Ghana

The team arrived in the country July 6 to assess the current economic situation and discuss the broad lines of the government’s Enhanced Domestic Programme that could be supported by an IMF lending arrangement.

At the conclusion of the mission, Mr. Sdralevich issued the following statement said “Ghana is facing a challenging economic and social situation amid an increasingly difficult global environment. The fiscal and debt situation has severely worsened following the COVID-19 pandemic. At the same time, investors’ concerns have triggered credit rating downgrades, capital outflows, loss of external market access, and rising domestic borrowing costs.

“In addition, the global economic shock caused by the war in Ukraine is hitting Ghana at a time when the country is still recovering from the Covid-19 pandemic shock and with limited room for maneuver. These adverse developments have contributed to slowing economic growth, accumulation of unpaid bills, a large exchange rate depreciation, and a surge in inflation.

“The IMF team held initial discussions on a comprehensive reform package to restore macroeconomic stability and anchor debt sustainability. The team made progress in assessing the economic situation and identifying policy priorities in the near term. The discussions focused on improving fiscal balances in a sustainable way while protecting the vulnerable and poor; ensuring credibility of the monetary policy and exchange rate regimes; preserving financial sector stability; and designing reforms to enhance growth, create jobs, and strengthen governance.

“IMF staff will continue to monitor the economic and social situation closely and engage in the coming weeks with the authorities on the formulation of their Enhanced Domestic Program that could be supported by an IMF arrangement and with broad stakeholders’ consultation

“We reaffirm our commitment to support Ghana at this difficult time, consistent with the IMF’s policies.

“Staff express their gratitude to the authorities, civil society, and development partners for their constructive engagement and support during the mission.”

Source: news.com|Ghana