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Business News of Saturday, 31 October 2020


Economic growth could’ve hit 6 percent if not for coronavirus – Dr George Domfeh

Dr George Domfeh, Economist play videoDr George Domfeh, Economist

An Economist, Dr George Domfeh has said economic growth projections for Ghana would have hit 6 percent if not for the adverse impact of the coronavirus pandemic.

This comes after the Finance Minister, Ken Ofori-Atta told legislators in Parliament on October 28, 2020 that economic growth for Ghana is projected to rebound strongly at 5.7 percent in 2021.

According to Dr Domfeh, the pandemic has hugely affected the manufacturing and services sector which in turn impacts on Gross Domestic Product growth.

In an interview on GhanaWeb's BizTech, Dr Domfeh explained that, manufacturers and operators in the hospitality sector have had to lay off workers due to the coronavirus lockdowns and restrictions.

“In the first quarter analysis of 2020, you will realise that the manufacturing and services sector grew negatively and now with the reopening of air borders to international and domestic traffic and other further easing of restrictions, growth is gradually rebounding in these sectors,” he noted.

He added that the most recent Bank of Ghana (BoG) Composite Index for economic activity suggests the manufacturing and services sector indicates some positive signs.

Dr Domfeh, however, cautioned that Ghana’s exports regime could still be at a loss due to a lack of sufficient production activity coupled with some coronavirus induced restrictions on the global export market.

Meanwhile, in 2018, the national debt of Ghana amounted to approximately 59.29 percent of the Gross Domestic Product, a figure that currently stands at over 65%.