Ghana

This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile Ghana's economy and currency are stabilizing, with a stronger recovery contingent upon a successful external debt restructuring The authorities are delivering sizeable fiscal consolidation. --Ghana remains in default on its commercial foreign debt obligations. --Domestic debt restructuring and the suspension of most external debt servicing have brought the effective interest rate Ghana pays on general government debt down to 5% on a cash basis. --Fiscally driven increases in utility and fuel prices contribute to still-elevated, albeit slowing, inflation. --These lower interest payments, alongside constrained primary expenditure, explain the narrowing of Ghana?s general government deficit during 2023 to a projected 4.8% of GDP versus

...Institutional and economic profile Flexibility and performance profile Ghana's economy and currency are stabilizing, with a stronger recovery contingent upon a successful external debt restructuring The authorities are delivering sizeable fiscal consolidation. --Ghana remains in default on its commercial foreign debt obligations. --Domestic debt restructuring and the suspension of most external debt servicing have brought the effective interest rate Ghana pays on general government debt down to 5% on a cash basis. --Fiscally driven increases in utility and fuel prices contribute to still-elevated, albeit slowing, inflation. --These lower interest payments, alongside constrained primary expenditure, explain the narrowing of Ghana's general government deficit during 2023 to a projected 4.8% of GDP versus 11.1% of GDP in 2022. --December 2024 parliamentary and presidential elections may hinder future compliance with the IMF program. --The disbursement of the next $600 million tranche of the...

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