Economist at the University of Ghana, Prof Eric Osei-Assibey is worried that the rise in COVID-19 cases could destabilise the economy if not contained quickly.
The warning follows the sudden spike in active cases, which has reached 2,413 as of January 18, with 361 deaths.
Speaking on PM Express Business Edition on January 21, Prof Osei-Assibey explained that this is based on how the economy reacted to these cases as well as the speculations about a possible lockdown in parts of the country.
He told host George Wiafe that initial restrictions back in March 2020 reflected in revenue inflows as the economy is expected to grow at 1.8 percent, according to the Ghana Statistical Service’s December 2020 figures.
This, some analysts believe, will be the lowest growth in a long while.
Prof Osei-Assibey expressed worry about how the economy was badly hit and the possibilty of a repeat.
On the way forward, Prof OSei-Assibey kicked against the idea of any aggressive fiscal consolidation programme insisting that this is rather the time to advance more support to businesses.
He, however, posited that this support should be well-targeted.
“Government and Monetary Authorities should not rush to tighten the numbers, but rather look at what can be done to build resilience”
“We need to have a worst case scenario that will carefully look at how the various measures should be targeted,” the lecturer indicated.