Question

Q1.(a) In his first televised address to the nation on measures to minimize the Covid-19 spread in Ghana, President Nana Addo said , “ I assure you that we know what to do to bring back our economy back to life, what we do not know how to do is bring people back to life”. In view of the President’s statement with respect to the macroeconomic variables or indicators, discuss, at least four (4) specific macroeconomic variables or indicators in Ghana, most likely to record a negative trend, given the negative effect of Covid-19 on the economy and explain in detail the rationale for your conclusion.   

(b) The adverse effect of the Covid-19 pandemic in the global economy, has brought to light the significance of government’s priority to citizen’s welfare in the advancement of economic goals or aspirations. That is to say, merely achieving macroeconomic targets is not enough to propel a healthier and more productive citizen population towards the economic good of the nation. Outline three (3) current welfare issues of most Ghanaians in the face of this Covid-19 pandemic economic sphere.

Answer 1

1, (a). The Covid 19 virus audited Ghana's wealth welfare and numbers. The Economic statistics whatever they were up to that point but the public health threat was real and unvarnished puting in to sharp focus on the benefits of funded medical facilitie and the President's Mantra of " Ghana beyond Aid"

For Ghana the social and economic disruption has rammed home some unavoidable "known - knowns" that can no longer be ignored. First, significant number of population live "hand to mouth" in financially precarious and socially wanting conditions.

Second, there is an urgent need to upgrade, build and Ghana's medical sector to reduce the inequalities within health delivery.

lastly, Ghana must grow its manufacturing , agriculture and IT infrastructure.

The Economic impact of covid 19 pandemic on the economy of Ghana. the government had taken more fiscal and economic measures to overcome the threat .Some of the macro economic variable are:

1. Price and demand

    since Ghana's economy is export oriented, the price and demand of the producs adversly effect the country.

2. Investment

Forieng direct investment nearly certain fall over the next year.. Domestic investment is expected to decline as awhole. The pandemic effect will give negative shock to private investment.

3. Fiscal and monetary impact.

Governments fiscal and monetary pilocies may negatively affect the country.

b). The three main channels would transmit the corona virus scare from the global economy to Ghanaian economic landscape are 1. international trade , 2. Investment and 3. crude oil price shock.

1. Trade. International trade amounts 68.3 % og total GDP. Ghana mostly depended on international trade, so epidemic like corona seriously affected chinas foriegn trade.

2. Invewstment. Foriegn direct investment , portfolio investment from other investers all over the world adversly affected Ghanas economy.

3. Crude oil price shock: sluggish oil demand and worsening price war between Russia and Soudi Arabia have resulted shumping in to 18 year low price.