Weekly Insights – Ghana – 07/07/2017 – Nimed Capital Limited

September 20, 2020 By: Nimed Capital0 comments

THOUGHT OF THE WEEK

Moody’s Economic Growth Outlook for Ghana

Moody’s Investors Service in a published report stated that Ghana’s B3 credit rating and stable outlook reflects its strong economic growth outlook and reduction in external imbalances, set against challenges which include a significant fiscal overrun in 2016, high government debt and very low debt affordability.
Moody’s envisaged a strong growth outlook for the country’s diversified economy compared to the regional average over the next few years, which would be supported by new oil and gas field developments coming on stream.
However, it highlighted some apparent current challenges such as our sovereign debt position, fiscal overruns and stability in the commercial banking industry, that need to be keenly checked to maintain our positive outlook and sustain current rating.

Outlook

Nimed research outlook for the country’s credit rating remains positive. Our outlook is premised on the current on-going reforms in the general economy. Such as witnessed declines in fiscal overruns, expected increase in oil output, decomposition of government debts portfolio into more long-term debt and Government’s commitment to pay the legacy energy sector debt. These on-going reforms will restore stability in our financial industry and further boost our credit rating profile.

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