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.
Latest Stories
-
I want to focus more on my education – Chidimma Adetshina quits pageantry
49 mins -
Priest replaced after Sabrina Carpenter shoots music video in his church
1 hour -
Duct-taped banana artwork sells for $6.2m in NYC
1 hour -
Arrest warrants issued for Netanyahu, Gallant and Hamas commander over alleged war crimes
1 hour -
Actors Jonathan Majors and Meagan Good are engaged
1 hour -
Expired rice saga: A ‘best before date’ can be extended – Food and Agriculture Engineer
1 hour -
Why I rejected Range Rover gift from a man – Tiwa Savage
2 hours -
KNUST Engineering College honours Telecel Ghana CEO at Alumni Excellence Awards
2 hours -
Postecoglou backs Bentancur appeal after ‘mistake’
2 hours -
#Manifesto debate: NDC to enact and pass National Climate Law – Prof Klutse
2 hours -
‘Everything a manager could wish for’ – Guardiola signs new deal
3 hours -
TEWU suspends strike after NLC directive, urges swift resolution of grievances
3 hours -
Netflix debuts Grain Media’s explosive film
3 hours -
‘Expired’ rice scandal: FDA is complicit; top officials must be fired – Ablakwa
4 hours -
#TheManifestoDebate: We’ll provide potable water, expand water distribution network – NDC
4 hours