Macroeconomic impact of the COVID-19 pandemic on the Ghanaian economy

Abstract

The implications of coronavirus (COVID-19) on the various sectors of the economy cannot be overemphasised. To provide the macroeconomic impact of the pandemic on the Ghanaian economy for the next five years, the study adopted the United Nations Economic Commission for Africa (ECA) Macroeconomic model developed for Ghana. The study revealed that by the end of 2020, employment is expected to decline by 6.3 percent, debt to GDP ratio increase to 78.4 percent, fiscal balance reaching negative 13.5 percent, GDP expected to grow at 0.95 percent, expected decline in demand for goods and services and private consumption among others. To minimise the effect of the pandemic on the economy, the government should provide various incentives such as soft loans and tax reliefs to the private sector, reduce export tax to boost export growth and also provide the incentives for value-addition to the country’s export among others.