Global credit rating agency Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘Restricted Default’ to ‘B-’ with a Stable Outlook.
The upgrade reflects significant progress in Ghana’s fiscal and debt management, following the successful restructuring of $13.1 billion in Eurobond debt and the near-completion of outstanding external debt negotiations.
Fitch in its report noted that Ghana had normalised relations with most commercial creditors and expects full restructuring to be finalised by the end of 2025.
“One of the standout achievements recognised in the Fitch
report is the sharp decline in inflation, which has dropped from 23 per cent in 2024 to 18.4 per cent in May 2025—the lowest rate in over three years,” it said.
Inflation it said, was expected to continue falling, averaging 15 per cent in 2025 and 10 per cent in 2026, supported by tight monetary policy, fiscal discipline, and improved exchange rate stability.
The Ghana cedi has appreciated significantly in recent months, reversing previous trends and helping to ease price pressures on imported goods and fuel.
Fitch credits the cedi’s strong performance to renewed confidence in Ghana’s macroeconomic fundamentals and proactive interventions by the Ministry of Finance and the Bank of Ghana.
Finance Minister Dr Ato Forson has led a comprehensive economic turnaround strategy focused on fiscal consolidation, debt sustainability, and restoring investor trust. Under his direction:
Ghana’s public debt-to-GDP ratio is projected to decline to 60 per cent in 2025, down from 93 per cent in 2022;
Gross international reserves have surged to $6.8 billion, with further growth expected in 2025 and 2026;
The fiscal deficit is narrowing, with a projected primary surplus of 0.5 per cent of GDP in 2025;
The Finance Minister, speaking earlier this month, reaffirmed government’s commitment to staying the course:
“We are building an economy that works for everyone. This upgrade is a signal that Ghana is back on track, and we will not relent in protecting the gains we’ve made,” he said.
