Impact of COVID-19 on projected inflation in Ghana 2020-2021

The coronavirus (COVID-19) pandemic was projected to affect Ghana's rate of inflation. The inflation rate was estimated at 8.5 percent for 2020 and 7.5 percent for 2021, before the outbreak of the virus. However, due to the pandemic, inflation projections in the country amounted to 11.2 percent and 9.3 percent for 2020 and 2021, respectively (under a baseline scenario). Furthermore, on the assumption that the COVID-19 pandemic got even worse, the rate of inflation was revised at 12.7 percent and 10.6 percent. It can therefore be seen that the studied impact was estimated to increase both under baseline and worst-case scenarios of COVID-19.

Overall, on August 1, 2020, the highest daily increase in cases was recorded in Ghana.