Fitch Upgrade Positive, But Economic Risks Remain – Economist

Fitch Upgrades Ghana to a ‘B-‘

Ghana’s recent credit rating upgrade by international rating agency Fitch has sparked cautious optimism among economic analysts. On June 17, 2025, Fitch upgraded the country’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from Restricted Default (RD) to B-, citing improved fiscal conditions and progress in debt restructuring.

The upgrade reflects renewed investor confidence in Ghana’s medium-term economic outlook. However, economists have warned that while the move is a positive signal, Ghana must remain vigilant to avoid slippages that could undermine the gains.

Upgrade Signals Confidence, But Debt and Inflation Loom

According to financial analysts, the upgrade is in line with expectations following Ghana’s recent negotiations with creditors and the International Monetary Fund (IMF). The country has also shown progress in stabilising inflation, improving domestic revenue mobilisation, and restoring some confidence in the financial sector.

However, the underlying risks—including high debt levels, global economic volatility, and persistent inflationary pressures—remain key concerns. “This upgrade is a welcome step forward, but the fundamentals must continue to improve. Ghana cannot afford to become complacent,” an economist said.

The government’s ability to maintain fiscal discipline, manage external shocks such as oil price fluctuations, and implement structural reforms will be crucial to sustaining the positive momentum.

The Fitch rating also opens up the possibility of greater access to international capital markets in the future, albeit at cautious terms, given Ghana’s recent history with debt defaults.

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