The ratings on Ghana balance vulnerable general government finances and a low level of economic development with a relatively stable political environment, improving external liquidity, and manageable levels of net public external debt and debt service payments. Despite Ghana's short history of democracy, the political environment is increasingly stable. Orderly elections in December 2004, which resulted in the re-election of President John Agyekum Kufuor, underpin continuing democratization. In recent years, prudent macroeconomic policies have reduced inflation, which is projected at 13.5% at year-end 2005, and secured higher real GDP growth, expected to reach almost 6.0% in 2005. Strong donor backing supports policymakers' focus on fiscal restraint and the restructuring of state-owned enterprises, although progress in reforming the public sector and
