Expect more downgrades until IMF deal is reached – Prof. Osei-Assibey

A Senior Lecturer at the Department of Economics of the University of Ghana, Prof. Eric Osei-Assibey says Ghana should expect more downgrades from rating agencies until a deal is reached between government and external debt holders, as well as the International Monetary Fund (IMF).

Speaking at the American Chamber of Commerce-Ghana 2023 Economic Outlook Report, Dr. Osei-Assibey described the recent downgrade by ratings agency, Fitch on Ghana’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating to Restricted Default from ‘C’ as worrying.

“This is not good but once you have this negative information coming up every now and then affecting your currency and others, we should expect more of this until government reaches an agreement with the IMF and external debts holders”, he stated.

With the right policies in place, Dr. Osei-Assibey is hopeful the economic can see a rebound in the medium term.

“These things will come but I’m sure with time the economy will be stable with the IMF programme. Government as I said earlier should support various sectors of the economy”, he stressed.

The American Chamber of Commerce Ghana 2023 Economic Outlook Report provided insight into government’s tax provision, fiscal and monetary development, debt sustainability and key macroeconomic performance and targets.