Ghana’s economy has received a major vote of confidence on the global stage as Fitch Ratings upgraded the country’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘Restricted Default’ (RD) to ‘B-’ with a Stable Outlook.
This significant upgrade, announced on June 14, 2025, comes after Ghana completed a historic restructuring of $13.1 billion in Eurobond debt with its external creditors — one of the most pivotal conditions of its ongoing IMF-supported economic recovery programme.
The upgrade marks a crucial turning point for the West African nation, which had previously fallen into restricted default following difficulties meeting external debt obligations in the wake of the COVID-19 pandemic and global inflationary pressures.
According to Fitch, the decision to upgrade Ghana’s rating was influenced by several key developments:
Successful Eurobond Debt Restructuring: Ghana has reached agreement with bondholders, easing its external debt servicing pressure.
Fiscal Consolidation: Government efforts to cut expenditure and increase revenue have reduced the fiscal deficit.
Improving Macro-Economic Indicators: Falling inflation, a stronger Ghanaian cedi, and a steady rebound in investor sentiment all contributed to the positive outlook.
Finance Minister Dr. Cassiel Ato Forson, who led the negotiation efforts, hailed the upgrade as a validation of the government’s bold fiscal and structural reforms. In a post on social media platform X (formerly Twitter), he said:
“This is only the beginning. We are unwavering in our resolve to fully revive the economy and deliver lasting relief and shared prosperity to you, the good people of Ghana.”
Ghana has made significant progress in stabilizing its economy under a $3 billion Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF), signed in 2023. Since then:
Inflation, which peaked at over 50% in early 2023, has steadily declined to 18.4% as of May 2025, the lowest in over three years.
The Ghana cedi has appreciated sharply since April 2025, easing the burden of imported inflation and stabilising fuel and food prices.
Gross international reserves have risen to $6.8 billion, improving the Bank of Ghana’s capacity to support the currency and the balance of payments.
The fiscal deficit has narrowed significantly, and the government is targeting a primary budget surplus by the end of 2025 — a first in nearly a decade.
Fitch forecasts real GDP growth at 4% in 2025, buoyed by improvements in agriculture, growth in industrial production, and a resilient services sector. The agency expects inflation to fall further to 15% by the end of 2025, and reach 10% in 2026, placing Ghana back on a path toward long-term price stability.
The rating upgrade is expected to boost investor confidence and ease Ghana’s path back into international capital markets. Analysts believe it could lead to lower borrowing costs, re-open access to foreign credit lines, and attract foreign direct investment across key sectors including energy, agriculture, and infrastructure.
Ghana had previously suffered credit rating downgrades from major agencies including Fitch, Moody’s, and S&P due to debt distress and fiscal mismanagement. The country’s default on its Eurobond payments in late 2022 marked a low point in its economic trajectory.
Now, the reversal of that trend suggests that Ghana’s ongoing reforms — such as public financial management, revenue mobilization, and state-owned enterprise governance — are gaining traction.
While celebrating the upgrade, Dr. Forson emphasized that the government is not resting on its laurels.
“We will continue to implement smart, people-centered policies to reduce hardship, protect livelihoods, and build a resilient economy. There’s a long road ahead, but we are moving in the right direction.”
International observers and local economists alike have welcomed the move, describing it as a sign that Ghana’s economic fundamentals are recovering — though they warn that political stability, continued fiscal discipline, and responsible debt management will be key to sustaining the gains.