Finance Minister, Ken Ofori-Atta

Audit and tax advisory powerhouse, KPMG, has said the coronavirus pandemic will reverse Ghana’s macroeconomic gains, with fiscal deficits projected to widen to 6.6% of GDP.

“A new budget statement may be required to needed to address these gaps and reset targets,” KPMG said in a Ghana-focused analysis on the economic impacts of the Covid-10 pandemic.

On Ghana’s economic fundamentals, KPMG noted that there will be pressure on the local currency due to bond sell-off by foreign investors and dwindling reserves.

“Serving external debt could be expensive and borrowing cost will rise as evidenced by rising yield on Eurobonds,” the KPMG stated in the economic impact assessment document.

But moving away from predictions by other institutions, KPMG said Ghana’s agricultural sector is not likely to be heavily impacted as it relies less on intermediary imports.

“However, uncertainties could lead to food shortages and panic buying which may induce food inflation,” according to KPMG.

Read the full analysis below.