Ghana’s reliance on imported fuel, gold exports exposes economy to shocks – Prof Quartey
Economist Professor Peter Quartey has warned that Ghana remains highly vulnerable to external economic shocks due to its dependence on imported fuel and gold exports.
Ghana's economy is highly susceptible to external economic shocks, according to Professor Peter Quartey, an economist. The country's vulnerability is primarily due to its heavy reliance on imported fuel and gold exports. Prof Quartey noted that Ghana lacks the buffer reserves that nations like Iran and the U.S. possess, which allows them to withstand global disruptions.
He pointed out that Ghana does not produce enough processed fuel from its oil production, leaving the economy exposed to changes in international fuel prices. Additionally, the nation's continued dependence on conventional fuels, such as petrol and crude, makes it vulnerable to external shocks, particularly as other countries rapidly transition to green energy sources.
The economist also highlighted the significant concentration of Ghana's export earnings, with gold accounting for nearly 60% of the country's total exports. This heavy reliance on gold exposes Ghana to significant risks, as any downturn in the international gold market could have severe consequences for the Ghanaian economy.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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