The direct impact of the global economic and financial crisis on households in
Ghana, as of April 2009, is small but potentially large. So far, foreign capital flows,
remittances and exports of timber, horticultural products and shea nuts have declined.
Shea nut volumes and prices have declined drastically. Timber exports declined by 27%
and remittances by 16% in January-February 2009, compared to the same months in
2008. Remittances also declined in the last quarter of 2008.
Seven out of eight focus groups among smallholders in the north, ten out of
eleven focus groups among cash crop farmers and four out of five focus groups among
slum dwellers indicated that their income has declined compared to a year ago.
Cocoa and gold prices have declined somewhat from their peaks in 2008, but are
still relatively high. Ghana and a large number of households are also vulnerable if cocoa
prices drastically decline, although that is not expected.