On April 22, 2016, Standard & Poor's Ratings Services affirmed its 'B-/B' long- and short-term foreign and local currency sovereign credit ratings on Ghana. The outlook is stable.
Overview
- We project a gradual pickup in Ghana's economic growth in 2016, owing to a more reliable power supply, while increased oil production from late 2016 should sustain medium-term growth.
- Ghana's fiscal consolidation remains broadly on track, with a projected fall in the deficit to 5.3% of GDP in 2016, mainly thanks to the introduction of revenue measures such as higher value-added tax and tight expenditure control; nevertheless, Ghana's main public power utilities represent a risk to public finances.
- We are therefore affirming our 'B-' long-term and 'B' short-term ratings on Ghana.
- The stable outlook balances vulnerability inherent to Ghana's fiscal and external deficits with policy support provided by a program of the International Monetary Fund.
