The ratings on the Republic of Ghana are supported by the entrenchment of macroeconomic and political stability and the easing of external and fiscal pressures following debt relief under the Multilateral Debt Relief initiative (MDRI). The ratings are constrained, however, by a narrow economic base, low levels of development and a reliance on donor inflows. Ghana's political institutions are becoming more established. The 2004 elections passed without incident, with President John Kufour returned to office. After chronic inflation and exchange rate depreciation at the turn of the current decade, the recent performance of the economy and of the Ghanaian cedi has been markedly more stable. Despite a substantial increase in oil prices during 2005, economic growth was solid at 5.8%
