An Examination of Coronavirus Pandemic Nexus on Ghana’s Economic Outlook

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IV, April 2020 | ISSN 2454–6186

An Examination of Coronavirus Pandemic Nexus on Ghana’s Economic Outlook

Ephraim Armstrong Awinbugri (Ph.D.)¹, Benjamin Akese Debrah^2
1Accountant/Research & Seminar Coordinator, Agogo Presbyterian Women’s College of Education
²Banker, Republic Bank Ghana Ltd, Kumasi

Abstract: – The research was to examine coronavirus pandemic nexus on Ghana’s economic outlook. The researchers employed quantitative research using secondary data emanating from excerpts of the 2020 budget statement presented by the Finance Minister, Ken Ofori-Atta and the subsequent statement presented to parliament after the outbreak of the virus. The researchers found that the overall fiscal deficit will augment from the programmed GHȼ18.9 billion (4.7% of GDP) to GHȼ30.2 billion (7.8% of revised GDP). The primary balance will correspondingly worsen from a surplus of GHȼ2,811 billion (0.7% of GDP) to a deficit of GHȼ5.6 billion (1.4% of GDP) and a general decline in tax and non-tax revenue, following drastic fall in prices of crude oil from $63.21 a barrel to $22.9 a barrel, cocoa $2,440/tons to $2,253/tons except Gold which had a price increase from $1,479/toz to $1,621.6/toz. Additionally, estimated GDP of 6.8% has since been revised to 2.6%/1.5%. Similarly, the hospitality industry, foreign direct investments, trade and industry have been adversely affected following measures such as lockdown of key commercial hubs in Ghana from operations to avoid further spread, closure of borders amongst others. The researchers recommend that government should ensure fiscal discipline despite 2020 being an election year as well as strict adherence to the Fiscal Responsibility Act 2018 (Act 982)

Keywords: Pandemic, Coronavirus, Economic Outlook

I. INTRODUCTION

Indisputably, the outbreak of the Coronavirus(COVID-19) pandemic announced by the World Health Organization on 11th of March, 2020 has not only jeopardized human lives, but also dented global economic outlook; Ghana not being an exemption.
The Minister of Finance, Ken Ofori-Atta, in compliance with Article (21) of the Public Financial Management Act 2016 (Act 921), The 1992 Constitution of Ghana, as well as the United Nations Sustainable Development Goals (Agenda 2030) and the African Union Agenda 2063, presented the 2020 Budget Statement dated 13 November 2019 captioned “Consolidating the Gains for Growth, Jobs and Prosperity for All”.

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