Across all major economic indicators and sectors in West Africa, Nigeria`s economy is far bigger than that of Ghana and this is not debatable. Except that ‘Ghana jollof’ is nicer and tastes better than ‘Nigerian jollof’.
A recent supplement report published by the African Development Bank on the topic African Economic Outlook 2020 amid COVID-19 suggests that Nigeria is facing rapidly weakening macroeconomic conditions, triggered by the sharp decline in the price of oil to below $30 a barrel in March 2020, from more than $60 at the start of the year. The pandemic has also had a cascading impact through reversed investment flows, volatile financial markets, and disruptions in travel and tourism.
Real GDP is even projected to contract by between 4.4% and 7.2% depending on the gravity and duration of the pandemic, wiping out gains from the three consecutive years of growth since the 2016 recession. From Ghana's perspective, the research also alluded to the fact that if the outbreak slows by July (baseline), real GDP growth is projected to decline from 6.1% in 2019 to 2.1% in 2020 and 5.6% in 2021. If the pandemic persists until the end of 2020 (worst case), real GDP growth could fall to 1.2% in 2020 and 4.8% in 2021.
This somehow presents a damning and gloomy picture on the economy and most corporates. In the midst of all these challenges, there is something Nigeria is doing so well and in my opinion, it is about time Ghanaian companies picked some best practices from Nigeria to meet their funding or working capital needs as COVID-19 continues to put a stress on most corporates in Ghana.
Latest Stories
-
IMF Deputy Chief worried large chunk of Eurobonds is used to service debt
4 mins -
Otumfuo Osei Tutu II celebrates 25 years of peaceful rule on golden stool
7 mins -
We have enough funds to pay accruing benefits; we’ve never missed pension payment since 1991 – SSNIT
32 mins -
Let’s embrace shared vision and propel National Banking College – First Deputy Governor
1 hour -
Liverpool agree compensation deal with Feyenoord for Slot
1 hour -
Ejisu by-election: There’s no evidence of NPP engaging in vote-buying – Ahiagbah
1 hour -
Ejisu by-election: Independent ex-NPP MP’s campaign team warns party against dubious tactics
2 hours -
ZEN Petroleum supports Tse-Addo Future Leaders School
2 hours -
NPP must win back Adentan seat in 2024 polls – Obeng Fosu
3 hours -
PPA Clarification: The dark side of the World Bank’s ‘giveaways’ in Ghana by Bright Simons
4 hours -
Blinken says China helping fuel Russian threat to Ukraine
5 hours -
MHA declares May as Purple Month for Mental Health Awareness
5 hours -
WAEC arrests former headmaster over illegal students registration
5 hours -
MeToo founder Tarana Burke defiant after Harvey Weinstein ruling
5 hours -
Be alert, insist on decent messages – Dwumfour tells media
5 hours