Home Business Ghana: Unresolved Power Crisis Will Set Ghana’s Economy Back By 3 to 5 Years – Economist

Ghana: Unresolved Power Crisis Will Set Ghana’s Economy Back By 3 to 5 Years – Economist

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Economist Dr Adu Owusu Sarkodie says it will take Ghana three to five years to recover if authorities allow current power outages to worsen amid the COVID-19 pandemic.

Speaking to Citi Business News on Ghana’s projected economic growth for 2021, Dr Adu Sarkodie charged government to focus on resolving the ongoing power crisis along with improving the fortunes of the tourism sector to ensure it achieves its five per cent growth target for this year.

“This is an economy that is reviving. If we sit down as a country and allow this ‘dumsor’ or ‘semi-dumsor’ to crash the economy again, the effects will be so devastating that it will take between three and five years to recover. It is something that we must be serious to talk about. We saw that in the year 2015, with the years 2015 and 2016 recording negative growth rates in multiple quarters,” he said.

“We don’t’ want to experience that again. Back then, there was no COVID-19, so if we allow a similar effect of intermittent power supply to come and add to the impact of COVID-19, the overall effect on economic activities will be so devastating and the recovery will be problematic,” he added.

Struggling industry slows Ghana’s economic growth rate to 0.4 per cent in 2020

Provisional figures released by the Ghana Statistical Service show that Ghana’s economy grew by 0.4 per cent in the year 2020.

The figure which was released by the Government statistician, Professor Samuel Kobina Annim as part of a lecture at the University of Cape Coast, represents a slower growth rate than what was projected by the International Monetary Fund and the World Bank which pegged Ghana’s growth rate at 0.9 per cent and one per cent respectively for 2020.