Ghana’s economy could not withstand partial lockdown beyond 3 weeks - Ofori-Atta
- The Finance Minister, Ken Ofori-Atta, has explained the rationale behind government's decision to lift the partial lockdown
- According to him, Ghana's largely informal sector would have been severely affected if the lockdown had been extended
- The minister added that the COVID-19 has severely affected Ghana's revenue target for the year 2020
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The Minister of Finance, Ken Ofori-Atta, has revealed that it was impossible for the partial lockdown recently imposed on two regions in Ghana to go beyond three weeks.
He explained that Ghana’s largely informal economy would be severely hit if the lockdown had been further extended.
On March 27, 2020, President Akufo-Addo announced the imposition of a partial lockdown on Greater Accra and parts of Ashanti Region.
READ ALSO: Ghana's economy will contract by 1% in 2020 - EIU reports
This formed part of an effort to contain the spread of the coronavirus which has affected several people and claimed lives all over the world.
Per a report by citibusinessnews.com, Ofori-Atta explained at an event at the Jubilee House that it was necessary to lift the lockdown.
“When you look at what happened during the lockdown. It was quite clear after a point that given the 90% of our population is informal and they go out each day to earn wages, it became increasingly impossible to continue with such a policy,” he noted.
Ofori-Atta went on to say that Ghana is likely to record a significant fall in its revenue target for 2020, due to the economic impact of COVID-19.
The cumulative effect of the coronavirus, he added, could cost Ghana about GHC9.505 billion.
YEN.com.gh earlier reported that the Minister of Information, Kojo Oppong Nkrumah, has stated that there is a likelihood of a fall in Ghana’s growth rate from 6% to 1.5%
According to him, the country’s deficit budget is also expected to exceed 5% of the Gross Domestic Product (GDP).
He further noted that there is also the possibility that Ghana would be impacted in its macro-fiscal position due to the pandemic.
READ ALSO: IMF gives Ghana $1 billion to fight COVID-19 epidemic
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Source: YEN.com.gh
