Economy reforms earn Ghana a higher credit rating- Moody’s

GHANA– Moody’s Investors Service, one of the big three credit rating agencies, has upgraded Ghana’s credit ranking to positive outlook (B3) from stable arguing that the nation’s institutional reforms and policy settings had led to improved macroeconomic and fiscal stability over the medium term.

Moody added that the Ghana’s stable outlook was partly as a result of the consequences of the reforms implemented under the recent International Monetary Fund (IMF) reform programme.

According to the credit rating agency, these reforms are beginning to bear fruit with the return to primary fiscal surpluses, debt maturity profile and increasingly sustainable growth prospects.

While receiving the news, Vice President and Head of the Economic Management Team (EMT) Dr Mahamudu Bawumia, expressed his belief that the ratings certified the results achieved so far by the managers of the economy over the past three years of economic recovery.

According to Dr. Bawumia, the rating is further evidence that the global economic watchers examining the country’s economic data see clearly that Ghana’s economy is back on track and the future looks even better.

“The Administration through its Economic Management Team will continue to ensure that the gains made are not compromised even in this year’s election,” said Dr. Bawaumia

He further noted that the government would ensure that the key pillars that contributed to the improved outlook -restored macro-stability, rebound growth and consolidated fiscal position, improved debt management and strong institutional reforms- continued.

Mr Kojo Oppong Nkrumah, the Information Minister, told journalists at a news conference in Accra on Sunday that, Government welcomed the change in the country’s economic outlook and was committed to doing more.

“The change in the outlook is very important development especially in the context of the country’s rating history over the years,” he added.

Moody’s, however noted that  pressures and risks still remain as evidenced by persistent revenue challenges and a potential repeat of pre-election fiscal cycles.

A rising public debt partly due to the emergence of significant arrears and further contingent liabilities in the energy sector was also a significant risk to the country’s positive credit rating.

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