Fitch raises Ghana's sovereign rating amid economic improvement and declining inflation
Ghana's improved rating was driven by strong efforts to control public finances.
Written by: Mohamed Ragab
Fitch Ratings raised the sovereign rating of Ghana From “B-” to “B”, a move that reflects the improvement in the country’s economic and financial indicators after years of economic pressures and a debt crisis, according to Reuters.
The agency said in its report that the decision to raise the rating was driven by strong efforts to control finances. publicAlongside achieving strong growth in real GDP, and improved macroeconomic stability indicators.
Inflation declined and reserves improved.
Fitch noted that lower inflation rates and progress in debt restructuring have helped support the recovery of the Ghanaian economy, which relies mainly on exports of gold, oil and cocoa.
The agency also explained that the significant increase in international reserves helped reduce external liquidity risks, which strengthened the country's ability to withstand economic and financial pressures.
Fitch's move follows similar actions by Moody's and Standard & Poor's, which also took positive steps toward Ghana's sovereign rating, praising the improved financial situation and the economic reforms being implemented by the government.
Economic resilience despite global pressures
The Ghanaian economy has shown remarkable signs of recovery in recent months, with inflation declining steadily for 15 consecutive months before experiencing a slight increase in April, the first increase since December 2024.
Government statistician Al-Hassan Idrissou explained that global economic shocks and regional turmoil have begun to push food and fuel prices upwards again, but he noted that these pressures have not yet been fully reflected in the various goods and services.
Despite these challenges, Fitch confirmed that the Ghanaian economy has shown resilience and adaptability to global changes, thanks to the fiscal policies and economic reforms adopted recently.
Positive outlook until 2027
Fitch Ratings expects Ghana’s public debt to continue declining to around 46% of GDP by 2027, with real GDP growth rates remaining strong over the coming years.
The agency also gave a “positive” outlook to the country’s sovereign rating, indicating its expectation that fiscal discipline will continue and public finance management will improve.
Economic analysts believe that Ghana’s improved credit rating could boost investor confidence and reduce borrowing costs, thus supporting the government’s efforts to achieve economic stability and restore sustainable growth after a period of severe financial challenges.
