Seth Terkper, the Former Finance Minister, has said that an economy cannot be run for 2 to 4 years without a crisis.
According to Seth Terper, Ghana must strengthen its buffers to withstand external shocks.
The former finance minister highlighted that both domestic and external crises are a natural part of economic management.
Speaking on Joy News, Seth Terkper disclosed, “If you don’t have sufficient food, and you import with the reserves, it affects the currency. So these are, if not something you can predict to the letter, is something you should know could happen,” he said.
“So, unless you prepare against them, events happen, and things go in circles. Commodity prices, we don’t control them. They go up, and they go down. This will appear.”
He added, “And I’ve always said, in so many interviews, that you cannot run an economy for two to three years, the longest, four, without one crisis or the other. It may be domestic, it may be external…”
“Economists have something called counter cyclical policies, it means that you know that the economy rises and falls and it settles, it’s good and band, good and bad.”
Meanwhile, President John Dramani Mahama has declared that Ghana’s economy is now resilient enough to withstand external shocks.
According to John Mahama, Ghana’s economy is resilient due to a series of measures implemented by his administration.
President Mahama stressed that Israel, Iran and the United States accentuate the need for a strong and stable domestic economy.
He further highlighted that the COVID-19 pandemic and the Russia-Ukraine war exposed the vulnerabilities in economies under the former Akufo-Addo government.
Speaking during his ‘Resetting Ghana Tour’ in the Bono Region on Wednesday, March 18, “In this world, unexpected events can occur at any time. If your monetary system is not well cushioned, such shocks can destabilise the economy,” he said.
“I have hope that the measures we have put in place in our first year have strengthened the economy. Even with ongoing global tensions, our economy will be able to withstand the impact,” he added.
However, Senyo Hosi, a Convener of the OneGhana Movement and Trustee of the Ghana Coalition Against Galamsey, has told President John Dramani Mahama that Ghana’s economy is still vulnerable to shocks.
According to Senyo Hosi, a resilient economy requires diversification, noting that Ghana’s economy. still depends heavily on gold.
Speaking in an interview on JoyNews’ Newsfile on Saturday, March 21, Senyo Hosi stated, “The coordination between the government, the central bank, and key economic actors has been impressive”.
“A resilient economy requires diversification, strong private-sector growth, and the capacity to withstand external shocks. Unfortunately, our economy still depends heavily on gold, which accounts for about 68% of our exports,” he explained.
He added, “The progress we have seen is commendable, but it is mostly stability. The next step must be building the right pillars for transformation”.
“Now that the fires have been quenched, it is time to start building the house. We need a clear pathway for investment, diversification, and private-sector-led production”.
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