In order to revitalize Ghana’s economy in the face of challenging circumstances, the Institute of Fiscal Studies (IFS) has urged the government to make tough decisions.
The IFS reports that the country’s macroeconomic instability has increased while the fiscal imbalance in the country keeps getting worse.
The institute attributes the predicament to what it terms previous governments’ excessive borrowing.
IFS Senior Research Fellow Dr. Siad Boakye stated in an interview with Citi News that “given the current status of the economy, government will have to maintain its ground and take some strict measures in its effort to restore the country under the harsh economic conditions.”
For example, it would be beneficial if the government made the audacious decision to examine its major initiatives.
Fitch had cut Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘B’ to ‘B-‘ and the outlook was negative, despite the fact that Ghana had gone to the IMF for assistance.
Additionally, Ghana’s long-term issuer and senior unsecured debt ratings were lowered by Moody’s Investors Service (Moody’s) to Caa1 from B3 and the outlook was altered to stable from unfavorable.
S&P also reduced Ghana’s foreign and domestic credit ratings on August 5, 2022, from B-B’ to CCC+C with a pessimistic economic outlook.