According to the Bretton Wood institution, the expected resilience in agriculture will not be sufficient to offset the covid-19 pandemic’s lingering adverse impact on the oil and other sectors of the economy.
“In Ghana—the region’s fourth largest economy—the expected resilience in agriculture will not be sufficient to offset the pandemic’s lingering adverse impact on oil and other sectors. As a result, the growth forecast for 2021-22 has been downgraded”, it emphasised.
The Gross Domestic Product (GDP) growth rate will be lower than the expected 2.7% rate for Sub Saharan Africa.
Though it had earlier forecast a growth rate of more than 4.0% for this year, the staggering sharp review of Ghana’s growth rate will come as a major concern to policy makers and businesses.
It is however not too surprising because of the existence of the coronavirus pandemic, which many were expecting to have lessen drastically by this time around.
The other worry for Ghana is that all its neighboring countries will grow strongly with Ivory Coast expected to record 5.5% GDP.
The World Bank also reviewed the country’s GDP for last year to 1.1% despite the economy entering into a mild recession in the third quarter of this year.
The economy is however expected to grow at a modest rate of 2.4% next year.
Additionally, the World Bank said the coronavirus pandemic caused an estimated 6.1% fall in per capita income last year in Ghana and many Sub Saharan Africa nations, and is expected to lead to a further 0.2% decline this year, before firming somewhat next year.
The resultant decline in per capita income is expected to set average living standards back by a decade or more in a quarter of Sub-Saharan African economies.