The director at the Centre for Asian Studies at the University of Ghana, Dr. Lloyd Amoah has stated Ghana is likely to experience a decline in investment inflows from China as the Asian country battles the coronavirus.
Statistics revealed the trade relationship between Ghana and China as at the end of the 2018 fiscal year was $7.3 billion making Ghana the 7th largest Chinese trading partner in Africa.
Dr. Amoah said though he isn’t anticipating a massive decline in investment, stakeholders and industry players shouldn’t be caught unaware should it happen.
“I think it is early days yet to predict or suggest that on the account of these factors, the implication then is that investments will necessarily slow down in countries like Ghana or other countries in the world that have become tightly connected with the Chinese economy,” he told Accra-based Citi FM.
According to the director, a degree of slowdown isn’t surprising considering the fact that the focus of the Chinese has been turned to fighting the disease.
“To some extent, there will be a slowing in the flow of resources because the Chinese government has directed a lot of its focus in trying to contain the disease. It will take some doing over a period to get back to the old order of things.”
“In that sense, you should expect natural slowing down on the account of the events that have occurred. But the key thing is whether or not there will be a bounce back. But if you look at SARS and the way the Chinese managed it, it was clear the Chinese economy eventually bounced fairly quickly,” he stated.
By Emmanuel Amewugah, Daily Mail GH