Moody’s ratings show govt is on track to economic recovery - Oppong Nkrumah

Government says the rating of Ghana’s economic outlook from stable to positive by an international rating agency, Moody’s Rating Agency, is a testament of the confidence and hope in the current Economic Management Model.

Government would ensure that the key pillars that contributed to the improved outlook -restored macro-stability, rebound growth and consolidated fiscal position, improved debt management and strong institutional reforms continued.

Mr Kojo Oppong Nkrumah, the Information Minister, told journalists at a news conference in Accra on Sunday that, Government welcomed the change in the country’s economic outlook and committed to doing more.

“The change in the outlook is very important development especially in the context of the country’s rating history over the years,” he added.

Moody’s decision to assign a positive outlook (B3) to Ghana from stable was because of the nation’s institutional reforms and policy settings leading to improved macroeconomic and fiscal stability over the medium term, in part as consequences of the reforms implemented under the recent International Monetary Fund (IMF) reform programme.

These reforms are beginning to bear fruit with the return to primary fiscal surpluses, debt maturity profile and increasingly sustainable growth prospects.

According to Moody’s, though pressures and risks remain as evidenced by persistent revenue challenges, a potential repeat of pre-election fiscal cycles, and the emergence of significant arrears and further contingent liabilities in the energy sector, all contributing to rising public debt.

Receiving the news, Vice President Dr Mahamudu Bawumia, the Head of the Economic Management Team (EMT), has expressed the belief that the ratings certified the results achieved so far by the managers of the economy over the past three years of economic recovery, contrary to the attempts by some critics to run down the recent economic gains.

The rating is further evidence that the global economic watchers examining the country’s economic data see clearly that Ghana’s economy is back on track and the future looks even better.

“The Administration through its Economic Management Team will continue to ensure that the gains made are not compromised even in this year’s election and ensure that the key pillars have contributed to the improved outlook.

“The people of Ghana can be rest assured that the EMT will continue with the uphill climb of building a strong economy for all. We’re all encouraged to continue with the necessary cooperation witnessed so far to this end,” Vice President Bawumia said.