Emerging-market sovereigns including Ghana’s mid-year outlook neutral – Fitch

Fitch Ratings has maintained its 2024 sector outlook at ‘neutral’ for all the main emerging-market regions, except for the Middle East and North Africa, which remained at ‘deteriorating’.

According to Fitch, the neutral outlooks reflect moderately weaker economic growth and persistent strains on public finances balanced against lower inflation and some easing financial conditions.

Fitch said further setbacks to the disinflation path in the US could have adverse implications for the global financing environment and so remains a risk.

“Geopolitical risks – including wars in Ukraine and the Middle East, US-China rivalry, and more protectionist trade and industrial policies – are likely to persist”, it added.

The neutral sector outlook broadly aligns with emerging market rating Outlooks.

There are 11 ratings with Positive Outlooks and six with Negative Outlooks. The net positive position of +5, has improved from +1 at end-2023, but is still equivalent to just 6% of our rated emerging-market portfolio.

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