Minority welcomes Fitch upgrade, flags 2025 budget concerns

The Minority in Parliament has welcomed Fitch Ratings’ recent upgrade of Ghana’s credit status, describing it as a sign of progress in the country’s economic recovery. However, they also raised red flags over budget credibility and fiscal discipline.

In a joint statement signed by Finance Committee Ranking Member Dr. Mohammed Amin Adam and Economy and Development Committee Ranking Member Kojo Oppong Nkrumah, the Caucus acknowledged the rating improvement as a positive milestone.

They credited the progress in part to debt restructuring efforts initiated under the previous NPP government, which secured around $12 billion in relief. The current NDC administration, they added, deserves commendation for continuing the process with efforts to restructure the remaining $2.6 billion.

Fitch’s upgrade followed Ghana’s successful $13 billion Eurobond restructuring in 2024 and a strong economic performance marked by 5.7% GDP growth and a 4.3% current account surplus. Inflation dropped to 18% by May 2025, down from 44% in 2022.

Despite these gains, the Minority pointed to Fitch’s doubts about the 2025 budget’s credibility. While the government targets a primary surplus of 1.5%, Fitch projects only 0.5%, casting doubt on Ghana’s ability to meet IMF benchmarks. The ratings agency also warned that the debt service-to-revenue ratio could rise to 26%, signaling fiscal strain.

“These developments vindicate the NPP’s claim that the economy handed over to the NDC was on solid footing,” the statement said. But it also emphasized that sustaining progress would require credible policies and realistic targets.

The Minority urged the Finance Minister to revise fiscal projections in the upcoming mid-year budget review in July to reflect the actual state of the economy.