Home World Coronavirus likely to drive Ghana’s overall economy into recession – Prof Quartey

Coronavirus likely to drive Ghana’s overall economy into recession – Prof Quartey


Director for Institute of Statistical, Social and Economic Investigation (ISSER), Prof Peter Quartey

Director for Institute of Statistical, Social and Financial Exploration (ISSER), Prof Peter Quartey, has explained Ghana is very likely to undergo a critical recession if the coronavirus pandemic persists.

He created these feedback on the back of projections the world might seeing its worst financial downturn in a lengthy time.

Head of the International Financial Fund (IMF) Kristalina Georgieva reported the entire world confronted the worst economic crisis considering the fact that the Excellent Despair of the 1930s.

The IMF has warned that the coronavirus pandemic will turn worldwide financial progress “sharply negative”.

The Environment Bank has also projected that a economic downturn is coming to sub-Saharan African for the 1st time in 25 yrs, due to an financial downturn triggered by the coronavirus pandemic.

Numerous economic gurus have also created similar forecasts about lots of financial powerhouses who, inspite of the triggering of massive stimulus deals, could not be left out of a possible slump.

According to Prof Quartey, Ghana’s financial system is anticipated to be hit hard if the international projections are something to go by, taking into consideration the actuality that quite a few routines are closely dependent on international trade.

“If that comes about, then that is probable to impact our context. Ghana is not immune from the coronavirus and hence, we are also likely to have some declines. I feel the Finance Minister has projected that we may mature all-around 2.6%… 2.5%. If it lasts for a lengthier interval, then it is probably to go up to 1.5%, and that could have severe repercussions on our economy,” he explained to Winston Amoah on JoyNews’ Upfront on Thursday.

Governmen, as portion of its stimulus package deal, announced the allocation of about GH¢600 million in smooth financial loans for modest and medium scale enterprises who may well have been forced to fold thanks to the pandemic.

Prof Quartey thinks, this bundle have to be specific at tax compliant business if the transfer is to see fruition.

Emphasising the have to have for a credible details to maximise this measure, he said “If you never file taxes and do the needful and you total the kind then you don’t qualify. That should be a lesson to Ghanaian organizations.”

“I believe it is about time we moved absent from this informality of folks not respecting the country’s guidelines and deficiency of enforcement. They should really put matters in position to ensure that it’s only people that file their tax returns benefit.”

The ISSER Director has also known as on federal government to acquire gain of the situation to accumulate simple data on citizens in the place.

He mentioned the creation of an correct databases at this time will streamline the pursuits this sort of as the distribution of food stuff, water and other social interventions aimed at mitigating the impression of the novel coronavirus on Ghanaians in particular, the susceptible.

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