International credit ratings agency, Fitch Ratings, has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating from “B-” to “B” with a Positive Outlook, signaling renewed confidence in the country’s economic recovery and fiscal management.
According to Fitch Ratings, Ghana’s public debt is expected to continue declining and could fall to about 46 percent of Gross Domestic Product (GDP) by 2027 as fiscal consolidation measures begin to yield results.
The agency noted that Ghana has strengthened its public financial management systems, reducing the risk of unexpected government spending pressures and short-term budgetary challenges.
Fitch also expressed confidence in Ghana’s ability to meet its debt service obligations, including payments on Eurobonds and Domestic Debt Exchange Programme (DDEP) bonds.
The latest upgrade comes amid ongoing economic reforms and debt restructuring efforts aimed at restoring macroeconomic stability and investor confidence.
However, the ratings agency cautioned that rising global oil prices could increase domestic fuel and transport costs, putting upward pressure on inflation towards the end of the year.
It further indicated that the Bank of Ghana may delay policy rate cuts in the near term in order to keep inflation under control and maintain economic stability.
The positive outlook reflects expectations of continued improvements in Ghana’s fiscal performance, debt sustainability and overall economic management.
Source :www.kumasimail.com
