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Business News of Thursday, 18 June 2020

Source: Class FM

Hospitality sector sweeps aside coronavirus; records 6.4% growth in Q1

Despite the emergence of the coronavirus pandemic at the beginning of this year, the Hotel and Restaurants [hospitality] sub-sector recorded strong growth higher than the national growth rate of 4.9% in the first quarter of 2020.

According to figures from the Ghana Statistical Service, the sub-sector grew by 6.4% in quarter one, sweeping away the presence of COVID-19.

It grew by 7.6%, 3.2% and 6.0% in the years 2017, 2018 and 2019, respectively.

However, many analysts believe the sub-sector, which was severely hit by the three-week partial lockdown of the country from 30 March, 2020, will be felt when the second quarter 2020 figures are released later.

This is because many hotels and hospitality firms have closed down due to low patronage and high cost of running the business.

Many market watchers are of the view that it will take, at least, six months for the hospitality sector to see signs of recovery from the coronavirus pandemic.

Ghana’s economy grew by 4.9% in quarter one of 2020, provisional figures from the Ghana Statistical Service have revealed.

This is compared to a growth rate of 6% of Gross Domestic Product during the same period in 2019.

According to the GSS, the services sector recorded the highest growth rate of 9.5% followed by the agriculture sector, which expanded by 2.8% and the industry sector by 1.5%.

The main sub-sectors driving GDP growth in January to March 2020 GDP were information & communication, manufacturing, education and public administration & defence, social security.

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