Ghana: Ghana's Economy Enters a New Era

Ghana has experienced a sudden economic downturn, a product of internal miscalculations and external shocks. Once ranked among the fastest growing economies in the world, Ghana has lost the steam that made it a shining example of a well-managed economy in Sub-Saharan Africa, and now finds itself in economic turmoil. Hikes in global prices of fuel, fertilizer, and food, mainly induced by the Russia-Ukraine war, currency depreciation, and an overwhelming debt load have plunged the economy into distress. The GOG has reached out to the IMF for a bailout and announced several policy measures, including the withdrawal of forex support for imports of rice, poultry, vegetable oil, and other non-critical goods. Industry players anticipate food shortage resulting in much higher prices in the near term. Experts have warned that the policy will promote smuggling and black-market activities. Post expects food prices in Ghana to remain elevated in the foreseeable future as supplies remain limited.