The ratings on the Republic of Ghana are constrained by a narrow economic base, low development, and wide fiscal and current account deficits despite the considerable support of donors. The ratings are supported, however, by a comparatively stable political system, and the respite in external and fiscal balance-sheet pressures following various phases of debt relief. Key macroeconomic indicators worsened significantly during 2008, due to a pre-electoral fiscal blowout and high oil prices. After two consecutive years of large fiscal deficits, the central government posted a much larger-than-anticipated 14.9% deficit (on a cash basis). The overrun was driven by expenditure, and the slippage was widespread, including both one-off and recurrent expenditure categories. Preliminary estimates point to extremely large arrears in 2008
