Continuous rise in COVID-19 cases can put pressure on the economy – BoG Governor

Continuous rise in COVID-19 cases can put pressure on the economy – BoG Governor

Dr. Ernest Addison - Governor, BoG

The Governor of the Bank of Ghana, Dr. Ernest Addison has said the economy will feel the full impact of the COVID-19 should the country continue to record new cases.

He said the increasing rate of infections which would put pressure on the economy will alterate the projected Gross Domestic Product (GDP) growth from an original estimation of over 7 per cent to 2 per cent.

Speaking at a business discussion on the “Mid-year Review of the Banking Sector”, he said:

“With the initial economic indicators that we have looked at for the first quarter of this year, some of these indicators came in relatively strong. If you look at the export of gold and cocoa, they have been relatively strong.”

Dr Addison said already, oil export was impacted enormously because oil prices had declined sharply, adding that “it is a significant revision for the outlook on growth.”

He also added that the COVID-19 pandemic is a global pandemic is one of a kind that has never been experienced at the global level.

“In terms of the impact on Ghana we will need to have some more observations to really understand the full impact of the pandemic,” he said.

Regarding issues on employment, he said businesses in the tourism, hospitality, management services and educational sectors have been impacted significantly.

“Some workers have been laid off whiles others have been sent on unpaid leave in other to manage the impact of the COVID-19,” Dr Addison said.