The ratings on the Republic of Ghana balance a vulnerable fiscal position and low 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 halved inflation, to a projected 14% in 2005 from 33% in 2000, and secured higher real GDP growth, expected at close to 6% annually in the medium term. Inflation, following a rebound in 2005, largely due to a 50% increase in fuel prices, is expected to trend
