Finance Minister, Ken Ofori Atta, has disclosed that Ghana’s economy will lose GH¢9.5 billion due to the outbreak of the novel Coronavirus pandemic.
According to him, this will represent 2.5 percent of Ghana’s revised Gross Domestic Product. (GPD)
Ken Ofori-Atta made the disclosure today, March 30 while briefing Parliament House on measures government has adopted to sustain the economy due to the disruption caused by the virus outbreak
“Speaker, the total estimated fiscal impact from the shortfall in petroleum receipts, shortfall import duties, the shortfall in other tax revenues, the cost of the preparedness plan, and the cost of Coronavirus Alleviation Programme is GH¢9,505 billion,” he revealed.
Adding that; “there will be a fiscal gap of GH¢11.4 billion,” Ofori-Atta said.
According to him, the outbreak of the pandemic will have a devastating impact on Ghana’s economy if not contained.
“Trade volumes and values are reducing as a result of the pandemic and reduction in imports will slow down production in Ghana. Gross Domestic Product (GDP) growth for Ghana’s petroleum revenues and other tax revenues are to slow down due to the outbreak of the virus,” he stressed.
Parliament received a request from the government on Saturday, March 28 to approve an agreement with the World Bank for an amount of US$35 million to support its operations in dealing with the pandemic.
The proposed agreement is between the Government of Ghana and the International Development Association (IDA), a subsidiary of the World Bank.
President Nana Addo Dankwa Akufo-Addo last Friday directed the Finance Minister to prepare a coronavirus alleviation programme to address the disruption in economic activities following the scourge of the COVID-19 pandemic for approval by parliament.
The Finance Minister is required to make a minimum of GH¢1 billion available to households and businesses, particularly small and medium scale enterprises.
Read the full statement below