Ghana’s Economy Contracts 3.2 Percent In Q2 2020 Due To Coronavirus

Ghana’s year-on-year economic growth rate contracted 3.2 percent in the second quarter of 2020 compared to 5.7 percent for the same period in 2019 due to coronavirus pandemic.

Professor Samuel Anim, the Government Statistician, said it was the first contraction in 37 years and followed the devastating impact of the coronavirus pandemic on businesses.

“Even after the restrictions have been lifted, businesses across sectors have been closed,” he said.

The 2020 second quarter Gross Domestic Product (GDP) at current prices was estimated at GH?85, 758.1 million compared to GH? 84, 312.0 million for the same period of 2019.

In constant terms, the second quarter of 2020 GDP was estimated at GH?39, 952.6 million for the second quarter of 2019.

The year-on-year quarterly GDP for non-oil growth rate for the second quarter of 2020 contracted 3.4 percent compared to the 4.3 percent recorded in the second quarter of 2019.

The information and communication sub-sector recorded the highest expansion of 74.2 percent, while the hotel and restaurant sub-sector also recorded the highest contraction of 79.4 percent.

The quarter-on-quarter GDP growth rate for the second-quarter for 2020 was 0.8 percent compared to 1.2 percent in the first quarter of 2020.
Meanwhile, the Producer Price Inflation (PPI) fell slightly in August to 9.0 percent compared with 9. 3 percent recorded in July.

The month-on-month change in producer price index between July 2020 and August 2020 was 0.9. percent.

The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 37.9 percent, followed by the utility sub-sector with 5.8 percent.

The Manufacturing sub-sector recorded the lowest year-on-year producer inflation rate of 4.0 percent.

For the monthly changes, the mining and quarrying sub-sector recorded the highest inflation rate of 5.2 percent, followed by manufacturing sub-sectors with 0.2 percent.

The Utility sub-sector recorded no inflation rate in August 2020.

The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.