Russia, Ukraine fracas: Economist agrees with a negative impact on the economy, advises govt to reduce levies in petroleum products

Chartered economist Mr. Emmanuel Darkwah has said the geopolitical risk going on between Russia and Ukraine will have implications for the world.

He said there is an element of truth in the commentary that Ghana could face some challenges if the ongoing fracas between the two countries continue.

Speaking on Frontline on Rainbow Radio 87.5Fm, he said the ongoing Ukraine and Russia brouhaha could have serious implications for countries including Ghana.

He said if prices of fuel go up on the international front, that of Ghana will also go up.

The key components that contribute to the increase in fuel prices on the international market include the exchange rate, and the levies and margins, he said.

Speaking to host Kwabena Agyapong, he advised the government to reduce some of the levies on petroleum products.

He said the government must look at the bigger picture and consider the increase of fuel products and its impact on inflation.

He believes although we are faced with challenges, we have a duty to reduce some of the levies to help in maintaining stability in the system.

The ongoing fracas between the two countries some have suggested could lead to higher energy costs which translate into expensive transport, affecting the movement of all kinds of goods

Key to the weakening economic outlook are rising energy costs and continuing disruption to supply chains on the global stage.

Some others have also argued that the issue could tip the world into stagflation, a combination of high inflation and low economic growth.

There is also the possibility of a high cost of living across the globe.

The chartered economist agreed with these assertions saying the possibility and impact of the confrontation have long-term effects.


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