Ghana for the first time in 37 years has fallen into a recession.
The recession follows the contraction of the economy for two consecutive quarters this year.
Ghana in the second quarter of 2020 contracted by -3.2 per cent.
Recent data released by the Ghana Statistical Service (GSS) indicate that the economy contracted by -1.1 per cent for the third quarter of 2020 when compared to third quarter 2019.
The contraction, according to government’s statistician, Professor Samuel Annim, was mainly driven by a decline in the industry and services sector with both contracting by 5.1 per cent and 1.1 per cent respectively.
Agriculture however, recorded the highest growth recording 8.3 per cent growth.
In a media engagement on the nation’s recession, Courage Martey, an economist with Databank, stated the recession recorded shows the depth of the scar of Covid-19 on the economy.
He however, noted that comparing the Q3 performance of the economy to the Q2 performance, there had been an improvement and the economy would soon come out of recession should the government continue its policies for the various sectors of the economy.
Ghana prior to the Economic Recovery Programme (ERP) of the 1980s was in a recession, Ghana after the ERP has not witnessed a recession till this year.
An economy goes into a recession when its Gross Domestic Product (GDP) records negative growth for two or more straight quarters.
A further prolongment of the recession can result in a depression of the economy.