Government has revised its growth target downwards to 0.9 percent for 2020 from the projected 6%.
8 percent due to the negative impact of the novel Coronavirus, the Minister of Finance Mr Ken Ofori-Atta has announced.
Presenting the mid-year budget review to Parliament, Mr Ofori-Atta said the revision of the macroeconomic targets was necessitated by global and domestic developments in the first half of the year.
"This revision, therefore, is informed by performance of the economy for the first half-year of 2020," he said.
The developments include; slowdown in economic activities as a result of the impact of the COVID-19 pandemic, shortfalls in domestic direct and indirect taxes, and custom taxes, as a result of the impact of the COVID-19 pandemic, estimated at GH¢5,089 million (1.3% of GDP).
There is also a reduction in petroleum revenue, mainly due to a decline in crude oil prices (from US$62.6 per barrel used in the 2020 budget to US$39.1 per barrel) as a result of the pandemic.
This is estimated at GH¢5,257 million (1.4% of GDP), and an increase in expenditures to contain the COVID-19 pandemic.
He said the Government was committed to addressing the damage being caused by the COVID-19 crisis and working to protect lives, livelihoods, save jobs, and return the economy to a sustainable growth and fiscal path.