How global headwinds are impacting Ghana’s 2022 growth

Ghana's economy has faced a challenging start this year, with a slight decrease in its first-quarter GDP growth to 3.3 percent due to a decline in the production of oil and gas. The Ghana Statistical Service has noted the impact of global economic challenges on the country, sparking a discussion on the internal policies and external factors influencing the economic landscape. John Gatsi, the Dean of the School of Business at the University of Cape Coast in Ghana, provided valuable insights into the key issues affecting Ghana's economy during a recent interview on CNBC Africa. Gatsi highlighted that while global economic conditions have undoubtedly impacted Ghana, internal policy weaknesses are also significant contributors to the current economic challenges. He emphasized the need for a focus on domestic production, particularly in the agriculture sector, to mitigate the effects of external factors on the currency and address high inflation rates. Gatsi stressed the importance of learning from crises like COVID-19 and the Russian-Ukrainian war to realign policies towards promoting local production and reducing reliance on imports. He cited examples of Ghana's reliance on imported goods, such as palm oil, despite having the capacity to produce them locally. Gatsi's analysis underscored the importance of reengineering policies to leverage domestic resources and enhance self-sustainability. Looking ahead, Gatsi expressed concerns about the growth forecasts for Ghana, indicating that current trends suggest a challenging outlook for the year. He highlighted the need for a comprehensive strategy to boost growth, increase revenue generation, and create employment opportunities to counter the prevailing economic uncertainties. The interview shed light on the complex dynamics shaping Ghana's economy and the imperative for proactive measures to navigate the global headwinds impacting the country's growth prospects.