Economic Growth slows in 2020; ends year at 0.4%

Ghana Statistical Service’s released provisional figures on Ghana’s economy shows a 0.4 percent growth in the year 2020.

The rate represents a slower growth compared to the International Monetary Fund and the World Bank projections of 0.9% and 1% respectively.

Also, the rate of growth was lower than the revised rate of government in its midyear budget. Government in its 2020 mid-year budget revised the economic growth rate of the country for the year 2020 from 6.8% to 0.9% at the peak of the Coronavirus pandemic.

However, while sharing the Gross Domestic Product figures at constant prices for 2020, Professor Samuel Kobina Annim revealed that the economy grew at a slower rate than anticipated.

“The provisional constant annual GDP estimate (incl. oil) for 2020 was GH₵165,992.7 million while the estimate for 2019 was GH₵165,307.6 million. This translates into a provisional annual Oil GDP growth rate of 0.4% for 2020″, the Government Statistician, Professor Samuel Kobina Annim at a lecture at the University of Cape Coast disclosed.

On a quarter on quarter basis, Professor Kobina Annim, indicated that the economy grew by 3.3% in the 4th quarter of 2020 when compared with the 6% growth rate recorded in the 4th quarter of 2019.

He however added that the contractions experienced in the second and third quarters were worse than originally anticipated.

“We are yet to return to the pre-COVID 19 growth rates. It is important to note that the provisional figures that were released in the 2nd and 3rd quarters of 2020 indicated that the economy contracted by 3.2% and 1.1% respectively. Based on finalized figures we’re now seeing a contraction of 5.9% and 3.3% respectively. It is also important to note that based on the provisional figures the economy grew by 4.9% in the 1st quarter of 2020, but per the revised figures the economy grew by 6.8%.”

By Adnan Adams Mohammed