Fitch Ratings Agency on Friday upgraded Ghana’s outlook to stable, saying the government was making progress in stabilizing the economy after a period of crisis.
The agency kept its ‘B’ rating on the gold, oil and cocoa producer, but said it expected a revival of GDP growth and a decline in inflation and the budget deficit.
Ghana was seen as having one of Africa’s most dynamic economies until it was hit by a fall in oil prices and a fiscal crisis caused by government spending on civil service wages in 2014.
The country is now following a $918-million International Monetary Fund (IMF) programme to restore fiscal balance.
The government of President Nana Akufo-Addo, which took over power in January this year, promising to rebuild finances, called the rating a vote of confidence in its turnaround strategy.
“We have sought to bring clarity into what we are doing and we have taken steps with more transparency. This has been the anchor of our policy,” a senior government official told Reuters.
The government had said it found a hole in the budget and a bigger-than-expected deficit when it took over after winning elections in January.