Ghana's Economic Outlook: Fitch predicts exit from sovereign default by mid-2025
Accra, Ghana - Nov 19, 2024 - Ghana's economic outlook is looking up, thanks to Fitch's latest projections. The ratings agency expects Ghana to exit sovereign default by July 2025, driven by the country's anticipated completion of external debt restructuring by June 2025.
This positive forecast is also fueled by Ghana's progress in non-bond debt treatment, which is expected to wrap up by the end of 2024.
In a recent webinar on debt restructuring in Ghana, Zambia and Ethiopia, Thomas Garreau, Associate Director of Europe, Middle East and Africa Sovereign Ratings at Fitch, shared insights into Ghana's economic trajectory. Garreau noted that the country's debt restructuring process might be delayed due to upcoming elections, but Fitch remains optimistic about Ghana's prospects.
“For Ghana, we also expect the completion of the common framework restructuring by the first half of next year. There are some elections and that would delay the completion of the process, hence our forecast of next year”, he noted.
Some key milestones have already been achieved, including Ghana's agreement with the Official Creditor Committee (OCC) in January 2024 and the successful Eurobond exchange in October 2024.
To date, approximately $14.2 billion of Eurobonds have been restructured, representing 6.2% of Ghana's Gross Domestic Product.
Overall, Fitch's positive outlook suggests that Ghana is on the path to economic recovery, driven by effective debt management and strategic economic reforms.
Source: Florence Kyei / Lead News Online
