The International Monetary Fund (IMF) has revised Ghana’s economic growth rate for this year from 7.5% of Gross Domestic Product to 1.5%.

This is due to the COVID-19 pandemic which has ravaged the global economy.

It is, however, projecting a 5.9% GDP growth rate next year in its latest World Economic Outlook Report titled: “The Great Lockdown”.

The report forecast negative growth rates for developed economies such as USA, Canada and Mexico. Most economies in the group are forecast to contract this year, including the USA (–5.9%), Japan (–5.2%), the United Kingdom (–6.5%), Germany (–7.0%), France (–7.2%), Italy (–9.1%), and Spain (–8.0%).

“Growth in the advanced economy group—where several economies are experiencing widespread outbreaks and deploying containment measures—is projected at –6.1 per cent in 2020”, it explained.

African countries such as Nigeria South Africa, Ivory Coast, Cameroon, Senegal and Ethiopia will grow at -3.4%, -5.8%, 2.7%, -1.2%,3.0% and 3.2%, respectively.

The report explained further that among emerging market and developing economies, all countries face a health crisis, severe external demand shock, dramatic tightening in global financial conditions, and a plunge in commodity prices, which will have a severe impact on economic activity in commodity exporters.

Overall, the group of emerging market and developing economies is projected to contract by –1.0 per cent in 2020; excluding China, the growth rate for the group is expected to be –2.2 per cent.

Even in countries not experiencing widespread detected outbreaks as of the end of March (and therefore not yet deploying containment measures of the kind seen in places with outbreaks) the significant downward revision to the 2020 growth projection reflects large anticipated domestic disruptions to economic activity from COVID-19.

The World Bank had earlier projected 6.8% GDP growth rate for this year but has since revised it.

Without the impact of COVID-19 pandemic or any shock, the Breton Wood institution is forecasting Ghana’ economy to grow by about 6.4% and 5.9% of GDP in 2025 and 2030 respectively.

Finance Minister, Ken Ofori-Atta had said that the impact of the coronavirus menace on the real sector shows that the 2020 projected real GDP growth rate could decline from 6.8% to 2.6% with an outbreak and 1.5% with a partial lock-down.