5 serious ways coronavirus has changed Ghana’s economy for the worse

Ghana has recorded 2,719, cases of the novel COVID-19 according to the Ghana Health Service (GHS) latest update on Monday, 4 May 2020.

The GHS data also revealed that a total of 294 have recovered with 18 deaths.

The Coronavirus (COVID-19) pandemic is already having a significant adverse impact on the global economy, and Ghana is no different.

Governments around the world are implementing various fiscal measures to mitigate the adverse effect and provide relief for businesses and households.

On 30 March 2020, Ghana’s Minister for Finance delivered a Statement to the Parliament of Ghana on the “Economic Impact of the COVID-19 pandemic on the Economy of Ghana”.

The Minister outlined the expected impact of the pandemic on the Ghanaian economy and the fiscal and monetary measures taken by the Government of Ghana to mitigate the impact of the pandemic.

According to Finance Ministry, COVID-19 will impact result in significant shortfalls in petroleum receipt, shortfalls in import duties, shortfall in other tax revenues; increased health-related expenditures; and tight financing conditions.

Pulse.com.gh presents 5 critical highlights of how COVID-19 will impact the country’s economy:

1. Impact on Investments

Foreign Direct Investments (FDI) flows in 2020 have slowed down due to uncertainties surrounding the effect of the COVID-19.

2. Impact on the Hospitality Industry

The global trend in the cancellation of flights, closure of borders (land, sea, and air), and the need to maintain social distancing, including the ban on public gatherings, are having hugely negative impacts on economic activities in the hospitality industry.

3. Impact on Trade and Industry

Trade volumes and values (both domestic and international) are also reducing. There are already significant reductions in trade volumes and values with many countries, especially China, which constitutes the highest of Ghana’s imports and the second-highest of Ghana’s exports.

4. Impact on Commodity Prices

The pandemic is also having an impact on some commodity prices. Example is Crude oil prices.

5. Impact on Agriculture

Since agriculture does not require significant imported intermediate goods, the impact of the COVID-19 may not be severe. Nonetheless, growth could slow-down as a result of disruptions in access to inputs, supply chains, and lower demand activities.