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Background
COVID-19 & the Economy
The outbreak of the novel coronavirus also known as COVID-19 on the 31st of December 2019 in China, has fast become a global pandemic of which Ghana is not an exception. The IMF estimates the impact of the virus will be a global recession like the levels seen in the financial crisis of 2008 (a 2.5% contraction) and at best a no growth in 2020. This has major implications for Ghana, as government revenue from falling oil prices and demand will impact both fiscal policy and private sector productivity.
The Cases
WHO reports that a total of 462,684 cases have been reported of which 20,834 people have died globally as at 26th March 2020. Cases in Ghana have risen from 2 on the 12th of March 2020 to 132 as at the 26th of March 2020. With evidence of community spread of the virus confirmed, industry watchers remain concerned about the pace of growth of Ghana’s cases and the possibility of reaching levels seen in Italy where cases rose from 2 to over 80,000 in less than two months. A situation that has brought both the Italian economy and the health system to its knees.