Coronavirus to have adverse impact on economy – Finance Minister

Finance Minister Ken Ofori-Atta has disclosed that like other countries financially affected by the COVID-19 pandemic, Ghana will experience same with negative implications on the economy.

He noted that collapse of international crude oil prices, health expenditures to fight the virus will have an adverse effect on tourism, international trade, food and nutrition, FDI, among others.

Addressing Parliament on the fiscal implications of the coronavirus he indicated;

“Even though events of the coronavirus are still unfolding, preliminary analysis undertaken by the Ministry of Finance shows that the coronavirus will impact negatively on petroleum receipts due to the collapse of international crude oil prices, custom receipts, other receipts, expenditures (especially health related), and financing conditions on the fiscal front. More generally, it is affecting tourism, travel and conferences, FDI, international trade, food and nutrition, and poverty education.”

Despite the impending gap, he assured that the government is putting in place measures to close the possible financing gap in the 2020 Budget that could result from the impact of the coronavirus.

According to him, these measures may include withdrawal from the Ghana Stabilization Fund occasioned by anticipated shortfalls in Annual Budget Funding Amount (ABFA) adding that his outfit will seek for necessary approvals in due course.

“We are discussing with the International Monetary Fund to access part of a US$10 billion Facility, made available by the IMF to address coronavirus through the Read Credit Facility. We are also discussing with other multilateral and bilateral partners on potential assistance to close the financing gap.” He noted.

The Finance Minister added that the timely issuance of the $3 billion Eurobond has provided the necessary buffers to support the economy despite the difficult global circumstances.

He, however, expressed gratitude for the timely issuance of Eurobonds which he reiterated provided the necessary buffers to support the economy “in these grave times.”

Ending his speech with Chronicle 7:14 “if my people which are called by my name shall humble themselves…I will heal their land.”

In his words, “We are confident that with our President’s vision and leadership as well as our discipline as a nation and God’s guiding hands, He shall spare and prosper us, even in trying times.”