Despite Ghana’s economy being recently downgraded by a major rating agency, Standard & Poor’s (S&P), President Nana Addo Dankwa Akufo-Addo is optimistic that it would recover.
The global and local credit ratings for Ghana were reduced by S&P last week from B-B’ to CCC+C with a poor economic outlook.
S&P claims that increased finance and external pressure on the economy were to blame for the rating.
Even though he acknowledges that things are difficult, Nana Akufo-Addo asserts that things would improve for the nation’s economy soon. The President was broadcasting on a Tamale-based radio station.
Yes, the difficulties are there, and I want to minimize the difficulties that are affecting the lives of ordinary people in a very negative way. What I am saying to the people of Ghana is that, they should continue to have confidence,
President Nana Addo Dankwa Akufo-Addo
The Finance Ministry has previously voiced its displeasure with the judgment made by the credit rating agency.
Despite the negative effects of global external shocks on the economy, the government has reportedly taken some proactive steps to boost it.
It claimed that several significant income and spending initiatives, such as the 30% reduction in discretionary spending, had been put into place. The President is certain that Ghana will overcome these obstacles in the shortest amount of time.
Government is determined to work its way through the economy. We did it when I first came into office, and I am determined and strongly of the belief, that we can do it again because the policies are sound and are about putting Ghana in a strong place
President Nana Addo Dankwa Akufo-Addo
Prior to S&P’s downgrading, Fitch had previously given Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) a negative outlook and reduced it from “B” to “B-.”
Additionally, Moody’s Investors Service (Moody’s) revised the outlook from negative to stable and reduced Ghana’s long-term issuer and senior unsecured debt ratings from B3 to Caa1.