Ghana: Fitch Upgrades Ghana’s Credit Rating Amid Improving Economic Fundamentals

Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating from B- to B with a Positive Outlook, citing stronger economic growth, declining public debt, improving fiscal performance, and rising international reserves despite ongoing global economic uncertainty.

The upgrade marks another significant milestone in Ghana’s ongoing macroeconomic recovery following the country’s debt restructuring programme and broader fiscal reform efforts.

According to Fitch, the revised outlook reflects improving economic fundamentals and stronger policy credibility as authorities continue implementing measures aimed at restoring stability and rebuilding investor confidence.

“Even in the midst of global uncertainty and economic turbulence, Fitch has upgraded Ghana’s credit rating from B- to B,” the agency stated in its latest sovereign assessment.

The ratings agency said the upgrade was supported by a sharp decline in Ghana’s debt-to-GDP ratio, driven by robust economic growth, sustained fiscal consolidation, currency appreciation, and a substantial increase in international reserves.

Fitch projected that Ghana’s public debt burden would continue to decline over the medium term, with debt expected to fall to about 46 per cent of GDP by 2027, below the median forecast for countries within the B-rated category.

The agency also highlighted significant improvements in Ghana’s external position, pointing to strong current account surpluses, increased foreign direct investment inflows, and continued support from multilateral institutions.

According to the report, Ghana’s unencumbered reserves rose by approximately US$5.4bn in 2025 to reach US$12.3bn, strengthening the country’s external liquidity position and reducing short-term financing risks.

Fitch further noted that Ghana recorded a current account surplus of 8.2 per cent of GDP in 2025, largely supported by strong gold export earnings and favourable international gold prices.

On the fiscal side, the agency said Ghana is expected to maintain primary fiscal surpluses of 1.5 per cent of GDP in both 2026 and 2027, following a record surplus of 2.9 per cent in 2025.

The ratings agency also commended improvements in public financial management, noting that stronger fiscal discipline reduces the risk of near-term fiscal slippages.

Inflation trends were identified as another major factor supporting the upgrade. Fitch noted that inflation declined to 3.2 per cent in March 2026, representing Ghana’s lowest inflation level since 1999 and signalling improving macroeconomic stability.

The agency expects Ghana’s economy to sustain relatively strong growth through 2027, averaging around five per cent annually. Growth is expected to be driven by expanding gold production, improved consumer confidence, easing inflationary pressures, and lower borrowing costs.

Despite the positive outlook, Fitch cautioned that Ghana remains exposed to several risks, including elevated debt servicing costs and vulnerability to external economic shocks.

The agency warned that weaker fiscal performance, renewed inflationary pressures, or slower reserve accumulation could negatively affect the country’s credit profile in the future.

However, Fitch indicated that continued fiscal discipline, sustained structural reforms, and stronger external reserve positions could support additional rating upgrades over the medium term.