Middle East tensions threaten Ghana’s improving inflation – BoG Governor

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BoG Governor

Dr Johnson Asiama, the Governor of the Bank of Ghana (BoG), has cautioned that the Middle East conflict poses fresh inflation risks for Ghana.

The BoG governor disclosed that the escalating tensions in the Middle East could threaten Ghana’s improving inflation.

Dr Asiama highlighted that the Middle East tension is disrupting major global energy and shipping routes.

He further explained that the tension is creating an increasing volatility in global oil markets.

Speaking at the opening of the 129th Monetary Policy Committee (MPC) meeting, the BoG governor stated, “A significant external development has entered the picture, and that has to do with the escalation of the conflict in the Middle East. This conflict is disrupting key energy and shipping corridors”.

“It is increasing volatility in global oil markets, and it is introducing new uncertainty into the trajectory of global inflation,” he said.

He added, “For Ghana, the transmission channels are clear. Sustained oil price increases could raise the risk of imported inflation and could also tighten global financial conditions.”

“Geopolitical uncertainty tends to support gold prices… This could benefit our trade balance,” he added.

The BoG Governor highlighted that Ghana’s macroeconomic indicators have improved, but there is a need to carefully weigh global risks before making any decision.

In related news, President John Dramani Mahama has warned that the escalating conflict in the Middle East could have serious economic consequences for Africa.

According to John Mahama, hostilities involving the United States, Israel, and Iran would hurt African economies.

Mahama argued that the Middle East is the epicentre of global oil supplies, adding that African economies must brace for inevitable shocks.

President Mahama made this known while speaking during a bilateral meeting with Tanzanian President Samia Suluhu Hassan at the State House in Arusha on March 2, 2026.

He expressed alarm over the intensifying exchanges between the U.S., Israel, and Iran, as well as the counter-attacks, stressing that the tensions would trigger the rise of crude oil prices, which would impact African countries.

Meanwhile, Dr Adu Owusu Sarkodie, an economist, has said Ghana could generate higher revenue from crude oil exports if international prices rise due to the ongoing Middle East war.

According to the economist, Ghana, as an oil-exporting country, stands to benefit when global crude oil prices increase.

Dr Adu Owusu Sarkodie stressed that Ghana could receive more income than originally projected if production levels remain unchanged while prices increase.

He noted that such gains could give the government additional fiscal space, however, adding that the broader economic impact will depend on how long international tensions last and how global markets respond.

Speaking on PM Express Business Edition on Joy News, he explained, “I have already stated that Ghana also will export crude oil, so when the international crude oil price increases, Ghana stands a chance”.

“If we keep the quantity the same, then we stand a chance of getting more revenue than projected,” he explained.

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