Question

Outline the channels through which COVID-19 has affected the economy of Ghana

Answer 1

Ghana is a country in West Africa. It has the second largest GDP contributor after the Nigerian country. It has a developing economy. Nearly 68% of the population is living in rural areas. Agricultural production contributes 54% to the GDP rate of the country. Problems of poor infrastructural facilities hinder the growth of speedy economic development and the growth of local market share within the country. Let us discuss the negative factors by which COVID-19 affected the economy of Ghana.

For the past 8 - 9 months, the effects of COVID-19 have a very disastrous impact on the standard of living of both low and middle-level class people. Being an economically backward country, the rate of economic development in Ghana country has reduced to -3.20%.

The pandemic situation of COVID-19 has decimated oil mines production to 1.5% from the original rate of 6.1%. The mining business provided ample employment opportunities for all rural people living in nearby areas. But because of layoff operations, all employees of the mining department lost their job temporarily, having no compensation fund.

The Energy cost is utmost gone to a very higher level to fulfill the power needs in the country. As the power source of energy acts as a backbone for the infrastructure in the country, all the industries faced a shortage of power consumption. Bank of Ghana cannot spend on the nation-building activities as it needs to incur on Security purpose to safeguard its country from the international terrorist attack.

Finally, the public debt of Ghana's Government has reached 63.8%. This is because it imports much medical equipment and medicines from Western Countries. i.e. COVID-19 kits and essential medical goods imported with the funds allocated by the World Monetary Fund to help the poor countries. The country also lacks basic medical facilities previously before the COVID-19 situation. It also strives very hard to reduce the poor Health Index Rate by having 142nd rank globally when comparing with the the rate of other countries.