Financial analyst Dr. Daniel Anim-Prempeh has cautioned that Ghana’s economy could suffer significant setbacks if global trade tensions continue to escalate.
His remarks come in response to IMF Managing Director Kristalina Georgieva’s recent appeal for Ghana to strengthen its economic framework and prepare for the potential impact of rising trade disputes, particularly those spurred by new U.S. tariffs.
“All countries must redouble efforts to put their own houses in order. In a world of high uncertainty and frequent shocks, there is simply no room for delay in reforms to enhance economic and financial stability and improve growth potential.”
Speaking to Univers Business, Dr. Anim highlighted that tariff increases by major trading partners could raise the cost of Ghanaian exports, lower global demand for them, and reduce national revenue.
“When news of rising tariffs and trade imbalances emerges, it’s important that we assess the domestic implications and respond proactively. We must adopt strategies to cushion the impact; such as exploring alternative markets, and I support the IMF’s call for a review of our trade policies to safeguard our GDP.”
Dr Anim-Prempeh also noted that tariffs would reduce Ghana’s product sales in foreign markets, ultimately draining the country’s foreign currency reserves.
“If you have a large trade volume with a country imposing tariffs, it means your product will become more expensive in their economy, leading to a decline in demand. This decline can hurt our trade volumes and foreign exchange reserves. Ghana must act swiftly to diversify its trading partners and promote greater transparency in international trade relations.”
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Story by: Yvonne Jatoe-Kaleo | univers.ug.edu.gh
Edited by: Wahab Abdul Razak
