First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari says four key sectors will drive Ghana’s economic recovery post-covid-19

Despite the Ghanaian economy recording a contraction of 3.2% in the second quarter of 2020, Dr. Opoku-Afari is optimistic of positive growth in the 3rd Quarter of 2020.

Speaking to Philip Nanfuri on Accra-based MX24, Dr. Opoku-Afari stressed that the Agriculture, Services, Manufacturing and Construction sectors will spur Ghana’s Economic rebound.

“Even though we saw a contraction in the second quarter, the data that we are picking from the Composite Index Economic Activity and High-Frequency data including credit to the private sector, manufacturing, sales and a few other things shows that we are beginning to see some significant recovery already in the first few months of the third quarter up to September and in fact throughout the third quarter,” He said.

According to Dr. Opoku-Afari, the leading indicators available to the BoG points to a V-shape economic recovery.

“The impact on economic activities had not been as severe even though it is a contraction because -3.2% is not a small contraction but to have a turnaround in the third quarter shows that the recovery is going to be more of a V-shape than a U or a trapezoid,” he added.

Dr. Maxwell Opoku-Afari also reaffirmed the Central Bank’s commitment to implementing reforms and policies to mitigate the effect of the COVID-19 pandemic on the economy.

“We can say with boldness that Ghana has received international acclaim in terms of how the impact of the COVID has been handled and its impact on the economy as we discussed earlier on in terms of the expected negative impact of growth hasn’t been as initially expected. There has been a lot of fiscal spending on this. Not every economy has the capacity to respond to the COVID-19 like the way Ghana responded.” He added.

BACKGROUND

The Ghana Statistical Service reported a 3.2% contraction of the country’s economy for the second quarter of this year for the first time since 1983. The contraction was largely driven by the partial lockdown and border closure brought on by the coronavirus pandemic. The Agric sector recorded a growth rate of 2.5% whilst the services sector contracted by 2.6% and the industry sector declined by 5.7%. respectively. The non-oil sector contracted by 3.4%.