Sunday, 03 July

COVID-19: Economy could’ve hit 6.8%, 6.4% in 2020, 2025

Finance Minister Ken Ofori-Atta

Without the impact of the COVID-19 pandemic, Ghana’ economy could have grown by 6.4% and 5.9% of Gross Domestic Product (GDP) in 2025 and 2030, respectively.

The economy was projected to grow by 6.8% of GDP this year.

That is considered as appreciable by economists and market watchers.

According to the World Bank’s April 2020 Pulse Africa Report, investments were expected to increase by 5.1%, 4.6% and 3.9% in 2020, 2025 and 2030, respectively.

Whereas exports were to grow by 8%, 7.3% and 6.4%, respectively, imports were expected to grow by 5.8%, 5.4% and 4.9% correspondingly.

But the impact of the coronavirus pandemic compelled the country to revise its economic growth for 2020, which can also impact growth targets in the coming years.

In presenting to Parliament some fresh expenditure for approval as a result of the coronavirus pandemic, Finance Minister Ken Ofori-Atta said Ghana’s economy could grow by about 1.5 to 2.6% this year because of the impact of coronavirus pandemic.

According to him, though events on the coronavirus pandemic are still unfolding, a preliminary analysis of the impact of the coronavirus menace on the real sector shows that the 2020 projected real GDP growth rate could decline from 6.8% to 2.6% with an outbreak and 1.5% with a partial lockdown.

He emphasised that the projected growth will further worsen in the event of a full lockdown.

“Already, Mr Speaker, we are experiencing a slowdown in economic activities in the various sectors of the economy, as a result of the coronavirus pandemic. This will altogether slowdown economic growth, considerably”.

The World Bank, in its January 2020 Global Economic Prospects Report, forecast a growth rate of 6.8% of GDP for Ghana.

This was against the 7.5% forecast by the International Monetary Fund for the same year.

The projected growth rate, according to the World Bank, would make Ghana the joint 3rd-fastest growing economy among 42 sub-Saharan Africa countries.

However, the bank said growth will fall to 5.2% and 4.6% in 2021 and 2022, respectively.