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Business News of Tuesday, 29 September 2020

Source: www.ghanaweb.com

Coronavirus: Here are the key sectors that experienced contraction

As the easing of coronavirus restrictions indicate a step in the right direction, Ghana’s economic recovery is however projected to be on a gradual scale.

This is as a result of the restrictions placed earlier in March this year to curtail the spread of the coronavirus pandemic.

Meanwhile, the Governor of the Central Bank, Dr Ernest Addison, announcing its latest decision on the monetary policy rate estimated that Ghana’s economy will grow between 2.0 and 2.5 percent in the third and fourth quarters of 2020.

He added that headline inflation, after edging up sharply to 11.4 percent in July 2020, has started going down which is now at 10.5 percent in August 2020, on the back of declining food prices.

However, the central bank has provided an update on some key sectors of the economy that witnessed a contraction as a result of the coronavirus pandemic.

Here are the sectors below:

The Industry and Services sector

According to the Central Bank, the industry and services sector was the most hard-hit sector of the economy. The sector contracted by 5.7 percent and 2.6 percent respectively.

Sub-sectors

Under the sub sectors for Industry and Services, the worst affected by coronavirus pandemic was the Hotels and Restaurants. The sector contracted sharply by 79.4 percent.

The Trade and Manufacturing sector, according to the central bank contracted 20.2 percent and 14.3 percent respectively.

Meanwhile, the central bank said the high frequency data notwithstanding the contraction in the second quarter of 2020 indicate some green shoots of economic rebound activity.

The Governor of the Bank of Ghana, Dr Ernest Addison on his part explained that surveys conducted by the central bank for August 2020 showed that consumer confidence is bouncing back strongly and is currently above pre lockdown levels.

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