Ghana finance ministry sees swift recovery from COVID-19 slump

Credit: REUTERS/LUC GNAGO

Adds quote, background

ACCRA, Oct 28 (Reuters) - Ghana's Finance Ministry revised up its 2020 growth forecast on Wednesday and forecast a rebound to 5.9% next year as the economy recovers from its first contraction in almost four decades due to the coronavirus pandemic.

The West African nation, a major producer of gold, oil and cocoa, saw gross domestic shrink 3.2% in the second quarter after a three-week lockdown in March forced many businesses to close.

But lower prices and a stabilised exchange rate have boosted business optimism and led the ministry to expect growth this year of 1.9% versus an earlier estimate of 0.9%, Finance Minister Ken Ofori-Atta said in an address to parliament.

"Despite the set-backs from the pandemic, we are on track to recover," he said.

The ministry has also revised down its projected fiscal deficit for 2021 to 8.3% from 9.6% due to the anticipated pick-up in economic activity, he said.

(Reporting by Christian Akorlie Writing by Alessandra Prentice Editing by Bate Felix)

((alessandra.prentice@thomsonreuters.com; +380 44 244 9150; Reuters Messaging: alessandra.prentice.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.