COVID-19: GHANA’S INFORMAL SECTOR RECORDS LOWEST GDP IN 6 YEARS

COVID-19: GHANA’S INFORMAL SECTOR RECORDS LOWEST GDP IN 6 YEARS

Michael Hammond | YEN.COM

Ghana's informal sector has reportedly recorded the lowest Gross Domestic Product (GDP) since 2014 - The Ghana Statistical Service (GSS), however, reports that the informal sector grew by 5.9% in 2019 against 2.6% in 2018 - The outbreak of the coronavirus also presents a challenge to the informal sector as it has brought businesses to a standstill.

YEN.com.gh has learned that Ghana’s informal sector has recorded the lowest Gross Domestic Product (GDP) in 6 years. This comes at a time when the country recorded a growth rate which more than doubled the figure recorded in 2018. Information from the Ghana Statistical Service (GSS) shows that the informal sector grew by 5.9% in 2019 against 2.6% in 2018.

Per a report by thebftonline.com, the informal sector declined by 1.6% point to 27% in 2019. In the year 2014, the sector contributed 29.2% to GDP but declined to 28.1% and 28.6% in 2013 and 2012. YEN.com.gh understands that the decline in contribution to GDP is likely to be a better option, compared to the economic effects of the outbreak of the coronavirus. Information available shows that the economy is expected to record its slowest growth of 1.5% in 37 years since the infamous 1983 drought when it was plunged into a recession. YEN.com.gh earlier reported that the Ghana Statistical Service (GSS) reports that Ghana’s economy grew by 6.5% in the year 2019.

This is according to revised estimates by the Service and has been compared with the 6.3% recorded in 2018 and 8.1% recorded in 2017. The economy also recorded a growth of 5.8% of the Gross Domestic Product (GDP) for the non-oil sector.