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Dr Charles Godfred Ackah, a Senior Research Fellow at the Institute of Statistical, Social & Economic Research ISSER, believes government policies are a major factor that affects trade in the country.
According to him, former President John Mahama’s government recorded a huge fall in trade and as a result, everything was affected causing life to be difficult for Ghanaians.
“Every government comes with their own different policy. Policy of liberalization, policy of making the business environment more friendly… so what government does affects trade…trade began to fall in the period of NDC, particularly under president Mahama. There was a time when we had a bit of challenge and that challenge we saw trade began to fall.”
Speaking at the 9th Lecture Series by the Centre for European Studies at the University of Ghana on Friday, October 18, 2019, Dr Ackah noted that profitability and growth can only occur when trade is expanding.
“When trade is contracting; import and export is contracting and it means there is something wrong globally and internally. Anytime trade is expanding, it means there is a profitability and growth is going to expand… so government policy affect trade.”
He was emphatic that the challenges facing the economy are as a result of government’s actions.
Indicating that, exchange rate, inflation, among others, contribute immensely to the country’s growth and so due to the challenges, the macroeconomic framework affects our ability to trade and take advantage of Brexit.
“If the exchange rate depreciate, then we are going to have a challenge with our trade. If inflation is too high, we are going to have a challenge with our trade. And if credit is too high, we are going to have challenge with our trade. So the macroeconomic framework and policy affect our ability to trade and take advantage of Brexit and so it depends on government to a large extent.”
Dr Ackah however, urged government to be mindful of the policies they put in place so it doesn’t cause a fall in the trade sector of the country.
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