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Ghana continues to be in a dire economic situation triggered by runaway inflation and steady erosion of the value of its currency, the cedi. The inflation has reached almost 40% and its currency shaved off its intrinsic value by almost half as against the US dollar in recent times. The public exchequer has reached its lowest ebb in the recent times
Ghana continues to be in a dire economic situation triggered by runaway inflation and steady erosion of the value of its currency, the cedi. The inflation has reached almost 40% and its currency shaved off its intrinsic value by almost half as against the US dollar in recent times. The public exchequer has reached its lowest ebb in recent times.
President Nana Akufo-Addo, who has faced several protests in the West African country because of the situation, admitted that Ghana was in crisis. He blamed COVID and Russia’s invasion of Ukraine as major reasons for the current imbroglio.
Ghana, along with many African economies, was still recovering from the pandemic when the country was badly hit by the global increase in the price of food and energy mostly on account of the war in Ukraine. The local currency, Cedi, has been one of the world’s worst-performing currencies against the dollar this year. Ghana has 31 million people and relies on imports and depends on dollars to obtain products from external sources. The impoverished west African country now has to pay for a container of food articles, which it imports double the amount, it used to pay earlier, before the global food crisis.
For the consumers, the situation is alarming. Lesser people spend on non-essential things. That is also adversely affecting retail trade. To compound the situation, Ghana’s cost of living has risen exponentially with inflation reaching almost 40%, one of the highest levels in the last years.
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Ghana’s government blamed the pandemic and the war in Ukraine as some of the drivers of the economic crisis. But analysts think that the poor performance is also due to a lack of investments taking place in the country.
