Ghana govt. revises 2020 growth target downwards to 0.9 percent due to COVID-19

Ghana's Minister of Finance, Ken Ofori-Atta has announced that the Government has revised its growth target downwards to 0.9 percent for 2020 from the projected 6.8 percent due to the negative impact of the novel Coronavirus, according to a news report by News Ghana.

Presenting the mid-year budget review to Parliament, Ofori-Atta said the revision of the macroeconomic targets was necessitated by global and domestic developments in the first half of the year.

"This revision, therefore, is informed by performance of the economy for the first half-year of 2020," he said.

The developments include; slowdown in economic activities as a result of the impact of the COVID-19 pandemic, shortfalls in domestic direct and indirect taxes, and custom taxes, as a result of the impact of the COVID-19 pandemic, estimated at GHS5,089 million (1.3 percent of GDP).

There is also a reduction in petroleum revenue, mainly due to a decline in crude oil prices (from USD62.6 per barrel used in the 2020 budget to USD39.1 per barrel as a result of the pandemic.

This is estimated at GHS5,257 million (1.4 percent of GDP), and an increase in expenditures to contain the COVID-19 pandemic.

He said the Government was committed to addressing the damage being caused by the COVID-19 crisis and working to protect lives, livelihoods, save jobs, and return the economy to sustainable growth and fiscal path.