Economic Policy Advisor at the Office of the President, Seth Terkper, has cautioned that escalating tensions in the Middle East could severely disrupt Ghana’s economic progress if proactive measures are not taken.
Speaking on The Point of View with Bernard Avle on Channel One TV on Monday, June 30, Mr. Terkper said Ghana must not downplay the global implications of geopolitical crises, particularly those involving major oil-producing regions like the Middle East.
He warned that any further escalation could trigger a surge in global crude oil prices, thereby increasing Ghana’s import costs, weakening the cedi, and putting inflationary pressure on the economy.
Terkper observed that recent developments in the Middle East, including tensions and conflicts, have had a direct impact on global commodity prices, especially crude oil.
“Yes, it could, it has, for example, reversed the prices of crude oil,” he noted, referring to the volatility caused by geopolitical tensions.
He emphasized that the key to economic resilience is forward planning.
“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 added.
Mr. Terkper stressed the importance of building financial buffers, including strengthening the Sinking Fund and Stabilisation Fund, to help Ghana withstand external shocks.
His remarks come amid ongoing global uncertainties and economic pressures, prompting renewed calls for strategic policy planning and robust financial buffers.
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