Prime News Ghana

Fitch confirms Ghana's ‘B’ credit rating

By Sam Edem
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International credit rating agency, Fitch Ratings, has confirmed Ghana at ‘B’ with a generally stable outlook.

The agency noted that their judgement was based on the country’s medium-term growth potential as well as an improved macroeconomic stability.

It also expressed the view that the declining inflation rate will enable the Bank of Ghana to continue lowering monetary policy rate while embarking on other measures that will make it (the monetary policy) even more flexible.

In a statement to the media, Fitch said, “this is balanced against high government debt, existing weakness in public finances, and low GDP per capita.

In addition, it noted that fiscal outruns from the first half of the year - 2017 indicate that the government’s consolidation efforts are on course.

However, the credit agency highlighted that, despite of the gains made, “revenues have underperformed their mid-year budget targets, but reported expenditure has been lower as well”.

On its expectation for the country’s economic performance outlook, Fitch said it expects the general government deficit on a cash basis to reduce to 7.3% of GDP, down from 9.3% in 2016.

The credit agency also forecasts Ghana’s real GDP growth will grow to 6% in 2017, up from 3.5% last year – 2016.

The positive review of the international rating agency - Fitch represents a series of similar affirmations from the country’s economic stakeholders both in Ghana and across the globe.