Coronavirus: Report predicts Ghana's growth rate to decline by 0.3 percent to 6.2 percent

A report from Fitch has predicted that Ghana’s real growth rate will reduce by 0.3% to 6.2% in 2020.

Finance Minister, Ken Ofori-Atta

This is against the previous 6.5% forecast for this year. However, 6.2% is still good for the country.

According to the rating agency, “We, therefore, expect real Gross Domestic Product to expand by 6.2% in 2020, down from 6.5% previously.

In its analysis on the impact of the coronavirus on Sub Saharan economies, Fitch said, “The sharp decline in global oil prices resulting from the failure of OPEC+ to reach agreement on additional production cutbacks will undermine growth and export earnings in the region’s main oil producers—Nigeria, Angola, South Sudan, Congo Brazzaville, Equatorial Guinea, Gabon, Ghana, Chad and Cameroon.”

It explained that given a slowdown in hydrocarbons production growth, it expects headline real GDP growth of Ghana to decelerate slightly, which has been a key driver of headline expansion since 2016.

Oil accounts for around one-third of Ghana’s goods exports, and is thus a key generator of foreign capital.

However, Fitch said the impact will be less substantial than in Nigeria, Angola or South Sudan, since Ghana will benefit from strengthening activity in the services sector, persistently high consumer demand for services, and rising investment into mining and manufacturing.

The World Bank is projecting an economic growth of 6.8% for Ghana in 2020, according to its January 2020 Global Economic prospects Report.

This is against the 7.5% forecast by the International Monetary Fund for this year.

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