Bank of Ghana fears COVID-19 will collapse GDP growth to 2.5% in 2020

Source: graphic.com: 18 March 2020

The Bank of Ghana has expressed fears that the scourge from the Coronavirus disease (COVID-19) will collapse growth in the economy to 2.5 per cent in 2020.

The Governor of the central bank, Dr Ernest Addison, said in a statement issued Wednesday, March 18, 2020 that the 2.5 per cent growth rate would be a “worst case scenario” impact from the challenges of the disease on the local economy.

The Governor, however, said a preliminary baseline assessment of the impact of the disease showed that the economy could grow at five per cent this year as a result of the COVID-19.

In the 2020 budget, the economy was projected to grow at 6.8 per cent.

Dr Addison said the COVID scourge would result in shortfalls in imports, exports, taxes and foreign exchange, “which will culminate in slowdown in economic activity.”