The IMF explained that this is due to the COVID-19 pandemic which has affected the global economy.
IMF revises Ghana’s growth rate to 1.5%
The International Monetary Fund (IMF) has revised Ghana’s economic growth rate for 2020 from 7.5% of Gross Domestic Product to 1.5%.
In its latest World Economic Outlook Report titled “The Great Lockdown,” it predicted a 5.9% GDP growth rate next year.
The report predicted negative growth rates for developed economies such as the USA, Canada, and Mexico.
Most economies in the group are forecast to contract this year, including the USA (–5.9%), Japan (–5.2%), the United Kingdom (–6.5%), Germany (–7.0%), France (–7.2%), Italy (–9.1%), and Spain (–8.0%).
The report explained that “growth in the advanced economy group—where several economies are experiencing widespread outbreaks and deploying containment measures—is projected at –6.1 percent in 2020.”
African countries such as Nigeria, South Africa, Ivory Coast, Cameroon, Senegal and Ethiopia will grow at -3.4%, -5.8%, 2.7%, -1.2%, 3.0% and 3.2% respectively.
It explained further that among emerging market and developing economies, all countries face a health crisis, severe external demand shock, dramatic tightening in global financial conditions, and a plunge in commodity prices, which will have a severe impact on economic activity in commodity exporters.
The IMF projected that the group of emerging market and developing economies will contract by –1.0 percent in 2020; excluding China, the growth rate for the group is expected to be –2.2 percent.
The IMF predicted Ghana’s economy to grow by about 6.4% and 5.9% of GDP in 2025 and 2030 respectively without the impact of COVID-19 pandemic or any shock.
This is coming after the Finance Minister, Ken Ofori-Atta had said that 2020 projected real GDP growth rate could decline from 6.8% to 2.6% with a COVID-19 outbreak and 1.5% with a partial lock-down.
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