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”.
Also, Prof Fred Dzanku, an economist, has said that recent data indicate an improvement in some economic buffers, but warned against early declaration of Ghana’s economy as fully resilient.
Prof. Dzanku stated, “Well, I think that it’s always important to, as I say, go back to the fundamentals”.
“On these three, the president seems, I mean, suggests, and as the data shows, that at least for reserves, we are at a better position than we were a couple of years ago,” he acknowledged.
“Fiscal space is not looking good, right? Because you have a situation where your tax to GDP is still low, around 15 per cent, and it’s been so for some time. What it means is that your economy is not generating enough revenue,” he explained.
He emphasised, “Resilience is not just a short-term phenomenon. It’s something that you build into the system over a long period of time. So, we are not yet resilient, particularly depending on how long the crisis will last.”
“I would say that stability is necessary, but it’s not resilient. It’s a step towards resilience, and at this point, I would say that our buffers, some of it are looking good, others are not looking great, and therefore we still should be worried.”
Their comments come on the heels of President John Dramani Mahama’s declaration 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.