Country risk: Ghana remains a safe bet ahead of its elections
Analysts can see through the economic and fiscal shock to observe a country with its underlying strengths intact.
Ghanaian fishermen: Riding the waves, much like their country
As in other countries, Ghana is having to cope with the Covid-19 shock weighing on its macroeconomic indicators, softening GDP growth and widening the fiscal deficit.
In April, the IMF predicted the country’s GDP would grow in real terms by just 1.5% this year, before picking up pace again in 2021. The current account was seen temporarily widening to 4.5% of GDP, and the fiscal shortfall to 10% of GDP.
A few months on, it seems an even worse outcome is possible, with the world crisis worse than envisaged.
Despite this, Ghana has performed admirably in recent years and there is no reason why it should not do so in future, given its political strengths, which are largely responsible for the improvement in Euromoney’s country risk survey this year.