An Economist, Courage Martey has said the slow growth recorded for the first quarter of 2020 is as a result of the shrinkage in trade volumes between Ghana and its trading partners over the period.
He explained that the outbreak of the COVID-19 in Chain led to the economy of that country shutting down, a situation that affected the supply of goods to Ghana.
According to him, although the Services recorded the highest growth rate of 9.5%, trade contracted by over 14 percent owing to the effects of covid-19 on Ghana’s trading partners like China.
His comments follow Provisional figures released by the Ghana Statistical Service stating that the Country’s economy grew by 4.9% in the first quarter of 2020, compared to a growth rate of 6% of Gross Domestic Product the same period in 2019.
Speaking in an interview with Class Business, Courage Martey said Ghana’s economic growth is under challenge due to the covid-19 pandemic.
He said : “With the slowdown of the growth, this a consequence of what started in trade partners in the first quarter of this year.
“ China is a big partner of Ghana. They started feeling the effect the Covid-19 earlier.
“Covid 19 started in Chain so they shut down quickly so it measn that suy of goods from China to Ghana was restricted.”
The Ghana Statistical Service (GSS) has revealed Ghana’s economy grew by 4.9% in first quarter of 2020, compared to a growth rate of 6% of Gross Domestic Product the same period in 2019.
The GSS said the services sector recorded the highest growth rate of 9.5% followed by the Agriculture sector which expanded by 2.8% and the Industry sector by 1.5%.
The main sub-sectors driving GDP growth in January to March 2020 GDP were Information & Communication, Manufacturing, Education and Public Administration & Defence, Social Security.
Importantly, the services sector was the main driver of Gross Domestic Product growth contributing 3.6 percentage points to overall GDP growth rate of 4.9% in quarter one, 2020.
From the figures above, the services sector GDP particulalry was not impacted by COVID-19 in the first quarter because the lockdown took place on the last day of March 2020.
In the Services sector, Information and communication grew by 17.1% in the 1st quarter of 2020 compared to 14.6% in the 4th quarter of 2019.
The Real Estate however slowed to 3.8% in the 1st quarter of 2020 from 6.8% recorded in the 4th quarter of 2019.
Compared to 4th quarter of 2019, the Public Administration & Defence, Social Security expanded to 3.3% in 2020Q1.
There were contractions in the sub-sectors: Trade, Repair of Vehicle, Household Goods (-1.0%) and the Professional, Administrative & Support (-1.5%) sub-sectors.
Within the Industry sector, the Electricity sub-sector recorded 4.1% GDP in the First quarter of 2020, compared to 2.6% growth recorded in the 4th quarter of 2019.
Water Supply, Sewerage, Waste Management & Remediation Activities sub-sector grew by 2.5% in quarter one of 2020, compared to -0.5% in the 4th quarter of 2019. Manufacturing sub-sector grew by 1.3% in 1st quarter of 2020, compared to 1.8% in the 4th quarter of 2019.
The Mining and Quarrying sub-sector however slowed to 0.3% in the 1st quarter of 2020, from 1.6% recorded in the 4th quarter of 2019
Construction recorded the least growth rate of growth rate of -1.7% in First quarter of 2020 compared to -0.6% in the 4th quarter of 2019.
In the Agriculture sector, the Fishing sub-sector grew by 2.6% in the First quarter of 2020, compared to 2.2% in the 4th quarter of 2019.
The Livestock subsector recorded 1.3% growth rate compared to 1.7% growth rate recorded in the 4th quarter of 2019.
The Crops sub-sector grew by 0.6% in the 1st of 2020, compared to 2.0% in the 4th quarter of 2019.