Question

effect of coronavirus on Ghana economy and suggest ways to solve it

Answer 1

Ghana is an import driven economy,Covid 19 have significant adverse impact on the country's international trade and reserves.In Ghana, the economic impact of covid 19 include the floowing:

i)Hospitality industry adversely impacted due to closure of borders and general slowdown in tourism and demand for international travel.

ii)Decline in trading volumes and values due to disruption in supply chain globally.

iii)Contraction in FDI flows to Ghana due to uncertainties caused by Covid 19

iv)Mixed Impact of Covid 19 on commodity prices,as well as contraction in trade volumes are likely to result in net loss of government's revenue.

Measures to mitigate effect of Covid 19:

i)There must be establishment of committee to facilitate economic recovery.

ii)Provide necessary fund to the committee

iii)Cut down expenditures including CAPEX.

iv)Increase credit supply in the market.