An Economist Professor at the University of Ghana has said the COVID-19 outbreak and its accompanying lockdown will have a significant effect on businesses and employees across the country.

Godfred Bokpin explained that the majority of companies will change their mode of operations to a more digital kind thereby leaving casual workers at risk.

"About 70% of people in the country are in vulnerable employment," he said on Joy FM’s Super Morning Show, Tuesday.

President Nana Akufo-Addo has imposed a 14-day lockdown on some cities including Accra, Tema and Kumasi in a bid to contain the spread of the novel coronavirus.

Although, some experts have argued that the move wrong for the country considering the effects on households and the economy, others have applauded the decision.

According to Prof Bokpin, the 14-day lockdown will affect the trend of businesses moving forward.

“Not all the businesses can come back, some businesses are gone for good. This is going to shift the way things are going to be done post-COVID-19. New businesses will also emerge as a result of this," he stated.

 "A lot of people are going to be laid off or have been laid off already. Some of the people who have gone home may not come back to work again,“ he stated.

He added that government may have to make some changes to the law that regulates the central bank to contain the economic effect of coronavirus.

The academic said the bank may have to print some extra cedis to be pumped in the economy to aid recovery from the extra spending being made.

"This is because expenditures on health will increase although the inflow of revenue has reduced due to the slowdown in economic activity.

He added that whatever spending decision made in these times will have their “side effects”.

“You are also reducing your international reserves and it can expose your currency,” Prof Bokpin said.

 According to him, if government wants to secure a Eurobond, it will be very difficult due to the stress on the financial market.