Our prudent economic management shields Ghana from global shocks – Asiedu Nketiah
Mr Johnson Asiedu Nketiah, the National Chairman of the National Democratic Congress (NDC), says prudent economic management by the Government has helped shield Ghanaians from severe economic hardship amid rising global pressures.
He said measures taken within the Government's first year in office had stabilised the economy and softened the impact of external shocks, particularly those linked to heightened global tensions.
Mr Asiedu Nketiah made the remarks during the party's thank-you tour of the Upper East Region.
He however said ongoing tensions in the Middle East could negatively impact Ghana's economy if prolonged, particularly through rising global oil prices.
He was also optimistic that sound economic policies implemented by President John Dramani Mahama had helped stabilise the local currency and cushion the effects of external shocks.
“If this war does not stop and prolongs, we may get to a point where our gains will be eroded, but because of the prudent measures taken within this first year, we are able to manage the situation,” he said.
Mr Asiedu Nketiah explained that although crude oil prices on the international market had increased significantly, the relative stability of the Ghana Cedi against the US dollar had prevented a sharp rise in domestic fuel prices.
According to him, had the cedi remained weak, around GH¢17 to the dollar as the previous administration left it, Ghanaians would have been paying much higher prices for fuel at the pumps.
“If the dollar was still around GH¢17 and you multiply it by the current international oil price of about $100, we would not be able to breathe, fuel prices would have been extremely high,” he stated.
He added that the government's ability to stabilise the exchange rate had helped moderate the impact of global price hikes, making fuel costs more manageable for citizens.
Mr Asiedu Nketia further revealed that the government had been compelled to suspend a planned GH¢1 levy on fuel, which was intended to help clear debts in the energy sector, due to the current global economic pressures.
He warned that the suspension of the levy could lead to a continued build-up of energy sector debts but stressed that the decision was necessary to ease the burden on Ghanaians.
“We had to suspend the levy because of the high prices. That means the debt will continue to accumulate, but we cannot allow the burden on the people to worsen,” he explained.
The NDC Chairman called on Ghanaians to remain hopeful and prayerful, urging for a resolution to global conflicts to help stabilise economies worldwide and sustain Ghana's recovery efforts.
He emphasised that continued prudent management of the economy would be key to protecting the gains made so far and ensuring long-term stability.
GNA