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Ghana’s economy faces further downgrade as debt hit GHS122billion

Feb. 24, 2017, 2:04 p.m.

An economist, Courage Kinsley Martey, is warning Ghana’s economy is likely to be downgraded further by international rating agencies.

His prediction is premised on the country’s rising debt.

Ghana’s total debt stock had risen from GHc9.5 billion in 2009 to GH¢122 billion by the end of 2016, representing 74 percent of the Gross Domestic Product (GDP), per figures from the Finance Ministry.

Ghana is currently rated B3 with a negative outlook by Moodys, B negative with a stable outlook by S&P and B with a negative outlook by Fitch. But there is fear the economy’s rating will still go down.

Speaking to 3FM business, economist Courage Kinsley Martey “Currently, our credit rating is not the best and our current rating is about 6 notches below investment grade.

“If we do not show some commitment to fiscal discipline and our debt continues up, then we will be downgraded further,” he added.

He argued a further downgrade of the economy can cause a dip in investor confidence in the country.

“This means that there is a great warning to investors that, an investment in Ghana is great risk”, he added