BY Nadia Ntiamoah
Global credit ratings agency Moody’s has revised the economic outlook from “stable” to “positive,” citing improving fiscal conditions and easing domestic financing pressures.
The upgrade comes as Ghana gradually emerges from one of its most severe economic crises in decades, marked by high debt levels, currency instability, and a 2023 debt default that forced a halt in domestic bond issuance.
According to Moody’s, recent policy measures—including monetary easing and improved fiscal discipline—have contributed to declining domestic financing costs.
The agency also pointed to the government’s decision to resume domestic bond issuance as a key step toward reducing rollover risks over time.
In March 2026, Ghana lifted restrictions on issuing new domestic bonds, and in April successfully launched its first seven-year domestic bond since the suspension in 2023. Analysts view this move as a sign of returning investor confidence and stabilisation in the financial sector.
The outlook revision aligns with earlier assurances by the Minister for Finance, Cassiel Ato Forson, who told Parliament in November that the country was on track for sustained economic growth in 2026, driven by fiscal consolidation and structural reforms.
Despite the improved outlook, Moody’s maintained the credit rating at “Caa1,” reflecting ongoing vulnerabilities. The agency highlighted risks such as exchange rate volatility and dependence on commodity exports—including gold, oil, and cocoa—which leave the economy exposed to global price fluctuations.
Additionally, external factors such as the ongoing tensions in the Middle East were cited as potential threats to stability, particularly through their impact on global commodity markets and inflation.
While challenges remain, the revised outlook signals cautious optimism about the economic trajectory, with continued reforms expected to play a critical role in sustaining recovery and restoring investor confidence.
