International credit rating giant Fitch Ratings has lifted Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘Restricted Default’ to ‘B-’ with a Stable Outlook.
The move is seen as a major boost in investor confidence, reinforcing Ghana’s progress on the road to economic stability under the stewardship of Finance Minister Dr. Cassiel Ato Forson.
The rating agency highlighted significant strides in fiscal discipline and debt restructuring, pointing to the successful reorganisation of $13.1 billion in Eurobond debt and advanced talks on the remaining external obligations.
According to Fitch, Ghana has restored normal relations with most of its commercial creditors and anticipates the full restructuring process to be wrapped up by the close of 2025.
Inflation has been a key area of focus, and Fitch’s report lauded the government’s efforts in this regard. Inflation has dropped from 23% in 2024 to 18.4% as of May 2025 the lowest in over three years.
Projections show a continuing decline, with inflation expected to average 15% this year and dip further to 10% in 2026, driven by a mix of tight monetary measures, fiscal responsibility, and exchange rate stability.
One of the bright spots in Ghana’s economic landscape has been the Ghana cedi, which has seen notable gains in recent months.
This reversal of earlier trends has helped ease the cost of imported goods and fuel, further cooling inflationary pressures. Fitch credits this progress to “renewed confidence in Ghana’s macroeconomic fundamentals and proactive interventions by the Ministry of Finance and the Bank of Ghana.”
Dr. Ato Forson is credited with spearheading a broad economic recovery plan anchored in fiscal consolidation, debt sustainability, and investor engagement. Under his guidance, the country’s public debt-to-GDP ratio is on track to decline to 60% by 2025 down from 93% in 2022. At the same time, Ghana’s gross international reserves have climbed to $6.8 billion, and are expected to grow further through 2026.
The fiscal deficit is narrowing, with a projected primary surplus of 0.5% of GDP next year, and interest payments as a share of revenue have fallen to 25%, from a high of 48% in 2021. Meanwhile, real GDP growth stood at 5.7% in 2024, and is projected to hit 4% in 2025.
In response to the upgrade, top officials at the Finance Ministry praised Dr. Forson’s leadership and commitment. “This milestone reflects the Finance Minister’s bold leadership in navigating Ghana out of default and laying the foundation for sustainable growth,” one official stated. “Lower inflation, a stronger cedi, and renewed investor interest are all signs that the economy is stabilising.”
The improved rating is expected to attract new foreign investments, revive domestic capital markets, and alleviate pressure on public finances.
Speaking earlier this month, Dr. Forson reaffirmed the government’s commitment to sustaining the momentum: “We are building an economy that works for everyone. This upgrade is a signal that Ghana is back on track, and we will not relent in protecting the gains we’ve made.”
With these developments, the Fitch upgrade not only underscores progress at the policy level it also represents a step toward a more stable and prosperous future for all Ghanaians.
