• Public debt stock has been surging in the past months
• Fitch affirms Ghana’s economic outlook to negative
International research firm, Fitch Ratings has estimated Ghana’s economic outlook will remain negative until the fiscal economy improves.
According to the firm’s recent report on Sub-Saharan Africa Sovereign Credit Overview, Ghana’s fiscal economy must in the first quarter of 2022 witness improvement along with its Sovereign Credit Rating.
Fitch in the report explained, “This reflects continued uncertainty about whether sovereigns will be able to stabilise and reduce their debt levels, as well as risks to external liquidity in an environment of tightening global financing conditions.”
“Government debt still rising from already high levels median government debt for Sub-Saharan Africa rose to 66% of Gross Domestic Product in 2020, from 58% in 2019 and is expected to continue rising to 70% in 2021 and 73% in 2022, although we currently forecast a reduction to 72% in 2023”. Ghana’s debt to GDP is presently pegged at about 76%,” it added.
Prior to its latest report, Fitch Ratings revised Ghana’s economic outlook to negative in June 2021, but affirmed its Credit Ratings to B.
Already, there have been concerns over Ghana’s public debt stock and the rising interest cost of international bonds with some economists worried over risks to meet medium-term financing needs.
Meanwhile, Ghana’s Minister for Finance and Economic Planning, Ken Ofori-Atta is expected to present the 2022 budget statement before Parliament on November 17, 2021.
Ahead of the presentation, investors, market analysts and watchers expect the minister to spell out some economic policies which will stabilise the economy which has largely been affected by the coronavirus pandemic. Read Full Story
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