Finance Minister, Ken Ofori-Atta has not ruled out the impact of the ongoing war between Russia and Ukraine, as having contributed to the woes of Ghana’s economy.

The Minister believes the development forms part of unforeseen factors that have shaken the country’s fiscal stability in recent times.

Speaking at a press conference in Accra, he explained that "the war in Ukraine could not have come at a worse time for the global economy."

"Already global efforts toward economic recovery from the devastation wreaked by the Coronavirus pandemic were being disturbed by supply chain disruptions, surging inflation, and uncertainties in the financial markets, with anticipated hikes in interest rates," he said on Thursday.

State of the economy

The Bank of Ghana, in its January, 2022 Monetary Policy Report, said the stock of public debt was equivalent to 78.4% of GDP at the end of 2021, compared with 76.1% of GDP at the end of 2020.

The country’s total public debt stock stood at about GH¢344.5 billion as of November, 2021, a situation experts have described as alarming.

Fuel prices have also crossed the GH¢10 per litre mark amid the freefall being experienced by the local currency.

But he insisted that government is monitoring the proceedings closely and making the necessary adjustments as appropriate.

He added that "the range of sanctions imposed on Russia, will have profound effects both in the short and long-term for global markets."

"The longer the conflict goes on for, the greater will be the disruption to the global economy. We shall continue to monitor the situation very closely and make further adjustments if and when needed," Mr. Ofori-Atta explained.

He, subsequently, announced a wide range of plans to salvage the country’s economy.

The Finance Minister expressed optimism that the measures will go a long way to cushion the citizenry amid the economic downturn.

These measures encapsulate expenditure cuts, intensive revenue mobilisation drive, fuel price mitigation and currency financing measures.