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Moodys Upgrades Ghana's Economy

Image result for moodysGhana’s economy has earned praise from the rating agency, Moody’s with a B3 rating, charging the outlook from negative to stable.

 
The move is expected to boost investor confidence in the economy, which has suffered some major setbacks since the government began implementing its home-grown and IMF policies to correct some major imbalances.
 
The rating agency, in a statement, explained that three key drivers informed the decision to revise the outlook.
 
The first is the “significant deficit reduction and institutional reform implementation over the past year under the umbrella of the three-year IMF programme which stated in April 2015”.
 
“Reduced government liquidity risk on the external side after the successful issuance of a recent $750 million Eurobond in earmarked to redeem the remaining $400 million October 2017 Eurobond maturity” was the second driver.
 
The agency explained that the third reason was the improved balance of payment dynamics, amid continued development of oil and gas resources through higher foreign direct investment inflow, supporting reserve buffers and reduced currency volatility.
 
The Technical Advisor to the Minister of Finance, Dr Sam Mensah, said that “the revision of the outlook at this time is a testimony to the prudent policies adopted by the government since 2014 via the home-grown programme and consolidated in the IMF programme.